Merkel is considering two bids for the takeover of Opel, one from Italian can manufacturer Fiat, and another from Canadian auto-parts maker Magna, which is in partnership with Sberbank of Russia. Another potential bidder, the Belgian capital fund RHJ, is not apparently being taken as a serious contender.
According to reports last week, Bonn tended to favour the Magna bid, which calls for an investment of €1.1 billion, some of which would be guaranteed by the German federal government. Fiat then reportedly sweetened its own offer, promising to limit job losses to 2,000 - from 25,000 to 23,000 - and cutting the state aid it would require from €7 billion to €6 billion.
The improved bids from both sides were being considered in Bonn on Monday, though any decision taken this week is unlikely to be final. The German government is concerned that both rescue plans involve hefty government guarantees.