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Plan B for Vauxhall/Opel prepared in case Magna deal hits roadblock

General Motors has a back-up plan ready if the European Union were to block its sale of Vauxhall/Opel to Magna.

The Wall Street Journal reports sources as revealing plan B entails maintaining GM control of Vauxhall/Opel.

The newspaper states GM might bring in drastic restructuring, of even file for insolvency of Vauxhall/Opel.

On September 10 GM announced the sale of 55% of Opel to Magna and Sberbank, while 35% of the German company was to remain in GM's hands with 10% going to workers.

The agreement also provided for public guarantees totalling 4.5 billion euros.

Last week EU competition commissioner Neelie Kroes found ''substantial indications'' that state aid for Opel contained illegal conditions under EU regulations.

In particular, for the EU binding aid to an offer to a single bidder would violate EU competition regulations.

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