Magna shares rise seven per cent after Opel deal dashed
Wed Nov 4, 12:43 PMThe Canadian Press
By The Canadian Press
TORONTO - Shares of Magna International (TSX: MG-A.TO) gained nearly 7 1/2 per cent Wednesday after General Motors Co. dashed plans to sell a stake in its European Opel division to the company.
Magna stock moved up $3.17 to $46.17 on the Toronto Stock Exchange near midday.
On Tuesday, the company's longtime pursuit of the Opel division went up in smoke after GM pulled the plug on talks with Magna in favour of keeping Opel.
Magna had been seeking a 55 per cent holding in Opel alongside its lender, Sberbank of Russia, and reached a tentative agreement in September.
Under their arrangement, Magna would have cut about 10,500 of the 50,000 Opel jobs in Europe, with less than half the job cuts, or around 4,500, in Germany. The company would have also kept Germany's four Opel plans in operation.
This is the second time Magna has failed to buy Opel. In August, GM rejected Magna's offer in favour of Brussels-based investor RHJ International SA.
158.94 (1.43%)
