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Putin hits out at GM
05 November 2009
Russian prime minister Vladimir Putin has hit out at General Motor’s decision not to sell Opel/Vauxhall to Magna.
Putin, speaking through his spokesman Dmitry Peskov, said the deal had already been approved by GM, and Russia would now be studying the legal ramifications of GM’s decision.
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“GM has earlier passed its European division into management of a trust, which practically approved the deal, and further decisions were within the competence of this trust,” he said. “In this respect, the decision taken by the GM board of directors’ causes concerns.”
Magna’s funding partner for the deal was Sberbank, a Russian state owned bank. Between Magna and Sberbank, they were expected to take a 55 per cent stake in Opel/Vauxhall before GM pulled out, citing improved business conditions.
Putin said Russia would be taking advice on how best to proceed and warned GM that it was unhappy with the way it has conducted its business.
“According to the available reports, the consortium intends to hold consultations and a detailed legal analysis of the current situation,” he said. “The Russian government does not participate in this work.”
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