China moves on Opel with BAIC bid

Homann pointed to the chronic structural overcapacities that the EU is concerned about and cautioned that the European Commission has stated a bailout could not distort competition.

Sources familiar with the Opel negotiations have voiced anxiety that Paris might try to install French Economy Minister Christine Lagarde as the next EU Competition Commissioner under a likely second term for President Jose Manuel Barroso.

They fear she might be more critical in part since Opel does not have any major manufacturing operations in France, home to key competitors PSA Peugeot Citroen and Renault, which counts the French state as a large shareholder.

($1=.7133 Euro)

(Editing by Michael Shields and Simon Jessop)