Magna expects to resolve the last few issues holding up its takeover of German carmaker Opel from former parent General Motors by Tuesday, two sources familiar with the matter said on Thursday.
Magna's board of directors is scheduled to meet on July 7 to sign off on a business plan for the deal that serves as the basis for talks with lenders like Commerzbank which would finance the deal using an estimated 3 billion euros ($4.23 billion) in European state loan guarantees, the sources said.
One person involved in the deal said last Thursday's long meeting between GM Chief Executive Fritz Henderson, lead GM negotiator John Smith, Magna Co-CEO Siegfried Wolf and Magna COO Herbert Demel clarified many of the major points still open.
They came significantly closer to one another in the key points, the source said.
On July 7 there is a board meeting at Magna. They then have to have the business plan that they worked out approved, but that should be a formal matter.
This business plan serves as the basis of an expert opinion carried out by an accountancy firm, seen as a precondition for the financing for the deal.
Once the financing is lined up, the two sides would draft a contract that could be signed by July 15. This would likely be legally binding with assurances that any party that exits the accord would have to pay a so-called break fee.
The only remaining issue is whether 'New Opel' gets the sales distribution rights to GM's Chevrolet brand for the Russian market, but a solution should be achievable here, another person close to the talks said.
GM Europe and Magna declined comment.
(Editing by Michael Shields)