16 Jul 2009

Russian government lobbying for Magna

9:56 am on 16 July 2009

The Russian government is lobbying hard for the Canadian car parts group Magna to gain control of the European arm of General Motors.

President Dmitry Medvedev is visiting Germany this week. Officials say he will voice support for Magna and its Russian partner, Sberbank.

Magna is considered the frontrunner to secure a deal, but talks have stalled, allowing RHJ International of Belgium and Beijing Automotive of China to press their case.

Howard Wheeldon from BGC Partners says it's understood RHJ is committed to keep plants open, and rely on less government aid than Magna.