Marchionne fails to convince Opel labour on takeover bid

Abu Dhabi official denies Opel interest Frankfurt - Labour leaders who met Tuesday with Fiat chief executive Sergio Marchionne in Frankfurt said later they were still not convinced the Italian company's takeover bid was best for Opel.

Germany's IG Metall trade union has opposed the bid and instead favours either a state takeover of General Motors Europe (GME) or a plan offered by Magna, a Canadian-based parts maker.

IG Metall chairman Berthold Huber said after the 90-minute meeting he had told Marchionne that Germany had a tradition and culture of worker participation in business decision-making which Italy did not have.

The union, which was concerned to save German jobs, also continued to believe that Fiat's and Opel's model ranges could not remain intact after a merger because they were so similar.

Huber said he set out a list of conditions to be satisfied before IG Metall would agree to such a takeover. These included assurances that factories would not close, a substantial injection of capital by the investor and a large degree of independence for Opel.

He said labour also wanted board seats in any future pan-European automotive conglomerate to emerge from the merger, with a voice in all decisions. The union believed Opel should never again be a mere division of a major group. General Motors acquired Opel in 1928.

Marchionne had been receptive and promised to consider the issues, Huber said, who added the union was also willing to meet with other potential investors. The German government has asked for substantial offers for GME by Wednesday.(dpa)