Germany nears decision on Opel suitors

By Andreas Moeser and Christiaan Hetzner

BERLIN/FRANKFURT (Reuters) - Germany will decide on a preferred bidder for General Motors GM.N unit Opel by the middle of the week, after holding a final round of talks with suitors Fiat (FIA.MI), Magna (MGa.TO) and RHJ (RHJI.BR).

Chancellor Angela Merkel told reporters on Monday that pressure to choose an investor was building ahead of a June 1 restructuring deadline for GM set by the U.S. government, which is expected to lead to a Chapter 11 bankruptcy filing.

"In the middle of this week there will likely be a certain accumulation of pressure to make a decision," Merkel said.

Canadian car parts group Magna International emerged as the favourite to win Opel last week, but Italian carmaker Fiat has improved its offer. Belgian-listed holding group RHJ International is also bidding.

Several officials familiar with the government's plans said a decision was likely on Wednesday evening after consultations involving Berlin, GM and the U.S. administration.

"A decision must come by early Thursday at the very latest," one official, who requested anonymity, told Reuters.

The floundering Opel parent has the final word on who buys Opel, but Germany will also have an important say because it is being asked to cough up billions of euros-worth of loan guarantees as part of any deal.

Opel has 25,000 workers at four plants in Germany and the carmaker's fate has become a politically charged topic of debate in Berlin ahead of a parliamentary election on September 27.