BEIJING -- Beijing Automotive Industry Holding Co. held discussions this week with General Motors Corp. about the possibility of buying Adam Opel GmbH if an existing bid for the European unit of GM falls through, a person familiar with the situation said.
GM executives in Europe met with representatives of Beijing Auto after the Chinese government-owned company expressed interest in Opel for a second time, the person said. The second approach described in more detail how Beijing Auto would structure a possible takeover, and GM decided it "warranted a response," he said.
Beijing Auto's first expression of interest came after the bid deadline for Opel passed, and GM decided not to pursue the overture, which it didn't consider serious enough. Instead, it opted for a tentative deal with an investor group led by Canadian-Austrian auto company Magna International Inc.
Magna remains in the lead to buy Opel, the person knowledgeable about the Beijing Auto approach stressed. GM sees few potential snags to that deal, which could be closed in as little as two weeks once a final bid from Magna is made and accepted, he said.
GM's agreement with Magna isn't binding, and GM is talking to Beijing Auto and other possible bidders to keep its options open in case its negotiations with Magna fail, the person said.
