Another company could make a bid for General Motors European arm if the current deal falls through.

Private equity firm Ripplewood is understood to be ready to make a bid for GM Europe should the original agreement with Canadian parts firm Magna fail.

Ripplewood was one of  four parties interested in the deal, but was forced to withdraw after Magna were chosen as the preferred bidder, reports The Times.

Magna has offered to pay £610 million for a 55 per cent stake in GM Europe and has handed over more than £253 million of emergency funding to keep the group afloat.

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