RHJ closer to taking key stake in Opel

BRUSSELS: RHJ International said it is in advanced talks to buy Opel while Qatar looked to be moving closer to a 7 billion euro bailout of Porsche, raising the stakes in battles for control of both German carmakers.

The industry shake-up comes as carmakers around the world face a slump in demand, are burning through cash and are looking to the prospect of further consolidation to help them to ride out the economic downturn.

Sources familiar with the matter said GM negotiators believe their bargaining position has changed for the better now the US carmaker has emerged from bankruptcy protection with substantially lower debt.