Banking on Opel

Political leaders and bank officials from Germany's states met Tuesday in Berlin to discuss financing options for the struggling German carmaker. Opel is looking for new investors to take over the company as US parent company GM prepares to file for bankruptcy.

"Good progress" had been made at the talks, said Ulrich Wilhelm, a spokesman for Chancellor Angela Merkel. Other officials at the meeting confirmed that a financing plan had been established, which will include the federal and state governments and state-controlled banks.

The plan was contingent on a new investor taking over Opel and Opel's assets being placed in a trust, according DPA news agency.

Any takeover will likely require massive infusions of state funds to clear off Opel's debts and pension liabilities.

The meeting comes just a day before Berlin's deadline for potential investors to submit takeover plans.

Both Italy's Fiat car company and Austrian-Canadian auto parts firm Magna are expected to make a bid for Opel.

hf/AP/dpa
Editor: Nancy Isenson