Magna and Sberbank offer selected as the preferred solution for Opel

    AURORA, ON, and MOSCOW, Russia, Sept. 10 /CNW/ - Magna International Inc.
("Magna") (TSX: MG.A, NYSE:   MGA) and Savings Bank of the Russian Federation
("Sberbank") (RTS: SBER, MICEX: SBER03) today announced that their joint offer
to acquire a 55% interest in Adam Opel GmbH ("Opel") has been selected by both
General Motors Company ("GM") and the Opel Trust as the preferred solution to
address the future of Opel. Under the offer, the acquired 55% interest in Opel
would be owned 50:50 by a Magna/Sberbank consortium ("Consortium") with GM
retaining a 35% interest and Opel employees acquiring 10% as part of a new
labour framework. The offer contemplates a total equity investment by the
Consortium of Euro 500 million over time.
    "The Consortium is pleased that its plan for Opel has satisfied General
Motors. Together with General Motors, Opel employees and Opel dealers, the
Consortium will now work hard to lead Opel into a successful future," said
Siegfried Wolf, Magna's Co-Chief Executive Officer and Herman Gref, Chairman
of the Board and Chief Executive Officer of Sberbank. "Additionally, the
Consortium is grateful to General Motors for the constructive atmosphere
during the negotiations and to those parties which have provided their support
for the Consortium's business plan, including in particular the German
    Added Frank Stronach, Magna's Chairman, "Upon the successful completion
of the acquisition Magna will put in place appropriate "firewalls" in order to
ensure a complete separation between its current auto parts business and Opel
so that the confidential and proprietary information of its customers is fully
    Completion of the purchase remains subject to finalization of definitive
agreements and other conditions, including government-backed financing and
regulatory approvals.


    This press release may contain statements that, to the extent that they
are not recitations of historical fact, constitute "forward-looking
statements" within the meaning of applicable securities legislation.
Forward-looking statements may include financial and other projections, as
well as statements regarding our future plans, objectives or economic
performance, or the assumptions underlying any of the foregoing. We use words
such as "may", "would", "could", "will", "likely", "expect", "anticipate",
"believe", "intend", "plan", "forecast", "project", "estimate" and similar
expressions to identify forward-looking statements. Any such forward-looking
statements are based on assumptions and analyses made by us in light of our
experience and our perception of historical trends, current conditions and
expected future developments, as well as other factors we believe are
appropriate in the circumstances. However, whether actual results and
developments will conform with our expectations and predictions is subject to
a number of risks, assumptions and uncertainties, including, without
limitation: the potential for an extended global recession, including its
impact on our liquidity; the persistence of low production volumes and sales
levels; restructuring of the global automotive industry and the impact on the
financial condition and credit worthiness of some of our OEM customers,
including the potential that such customers may not make, or may seek to delay
or reduce, payments owed to us; the financial distress of some of our
suppliers and the risk of their insolvency, bankruptcy or financial
restructuring; restructuring and/or downsizing costs related to the
rationalization of some of our operations; impairment charges; shifts in
technology; our ability to successfully grow our sales to non-traditional
customers; a reduction in the production volumes of certain vehicles, such as
certain light trucks; our dependence on outsourcing by our customers; risks of
conducting business in foreign countries, including Russia, India and China;
our ability to quickly shift our manufacturing footprint to take advantage of
lower cost manufacturing opportunities; the termination or non-renewal by our
customers of any material contracts; fluctuations in relative currency values;
our ability to successfully identify, complete and integrate acquisitions; our
proposed purchase of an equity stake in Opel and the potential impact of an
ownership stake in an OEM; the continued exertion of pricing pressures by our
customers and our ability to offset price concessions demanded by our
customers; the impact of government financial intervention in the automotive
industry; disruptions in the capital and credit markets; warranty and recall
costs; product liability claims in excess of our insurance coverage; changes
in our mix of earnings between jurisdictions with lower tax rates and those
with higher tax rates, as well as our ability to fully benefit tax losses;
other potential tax exposures; legal claims against us; work stoppages and
labour relations disputes; changes in laws and governmental regulations; costs
associated with compliance with environmental laws and regulations; potential
conflicts of interest involving our indirect controlling shareholder, the
Stronach Trust; and other factors set out in our Annual Information Form filed
with securities commissions in Canada and our annual report on Form 40-F filed
with the United States Securities and Exchange Commission, and subsequent
filings. In evaluating forward-looking statements, readers should specifically
consider the various factors which could cause actual events or results to
differ materially from those indicated by such forward-looking statements.
Unless otherwise required by applicable securities laws, we do not intend, nor
do we undertake any obligation, to update or revise any forward-looking
statements to reflect subsequent information, events, results or circumstances
or otherwise.

    Magna International Inc. is the most diversified global automotive
supplier. Magna designs, develops and manufactures technologically advanced
systems, assemblies, modules and components, and engineers and assembles
complete vehicles, primarily for sale to original equipment manufacturers
("OEMs") of cars and light trucks. The company's capabilities include the
design, engineering, testing and manufacture of automotive interior systems;
seating systems; closure systems; body and chassis systems; vision systems;
electronic systems; exterior systems; power train systems; roof systems; as
well as complete vehicle engineering and assembly.
    Magna has approximately 71,000 employees in 247 manufacturing operations
and 86 product development, engineering and sales centres in 25 countries.

    Sberbank (Savings Bank of the Russian Federation) is the largest Bank in
Russia, Central and Eastern Europe, with about 30% of the total assets of the
Russian banking system and around 260 000 employees. The Central Bank of the
Russian Federation is the founder and the majority shareholder of Sberbank
(over 60% of the voting shares), with the rest of the shares dispersed among
more than 200 thousand individuals and legal entities. The Bank has the most
ramified branch network in Russia: 17 Regional Head Offices, over 20 thousand
branches and banking outlets, as well as subsidiaries in Kazakhstan and
Ukraine. The Bank holds the General License No. 1481, issued by the Central
Bank of the Russian Federation.

For further information:

For further information: Magna International Inc., Vincent J. Galifi,
Executive Vice-President and Chief Financial Officer, (905) 726-7100;
Sberbank, Anton Karamzin, Deputy Chairman of the Board and Chief Financial
Officer, + 7 (495) 957-5721,

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890