Canadian auto parts maker Magna has improved its offer for General Motors' European unit Opel, a German government source said on Tuesday.

Magna is now offering 350 million euros of its own capital immediately, said the government source, who is familiar with talks to find an investor for Opel, adding: Furthermore, there should be a 150-million euro convertible bond.

Magna originally wanted to invest 100 million euros ($142.8 million) of its own capital in Opel in two tranches of 50 million euros, sources involved in the negotiations said.

(Reporting by Gernot Heller, writing by Paul Carrel)