Berlin talks to help automaker Opel fail

German authorities were intent on securing a guarantee that about $2 billion in government aid would not be pulled out of the country if GM files for bankruptcy in the United States, The New York Times reported Thursday.

The negotiations between the U.S. Treasury Department, GM, and German officials lasted through the night. Afterwards, German economic minister Karl-Theodor zu Guttenberg said, "We don't have the assurances we need to approve a bridge loan."

Negotiators plan to complete talks before June 1. Meanwhile, the delay gives Germany more time to seek concessions from bidders for Opel, the Times said.

The talks whittled down the list of bidders to Fiat SpA of Italy and Canadian auto parts giant Magna.

With multiple bids, "Germany … will try to get as many concessions in terms of jobs and financial support as possible," analyst Arndt Ellinghorst, at Credit Suisse told the newspaper.

Social Democrat Peter Struck called the bid from Magna the more "realistic" of the two bids. Fiat's Chief Executive Officer Sergio Marchionne, however, met with German Chancellor Angela Merkel Tuesday to lobby for Fiat.

Copyright 2009 by United Press International.