Opel’s slow deal-making is a bad sign
TEXT OF STORY
Bill Radke: The board of General Motors said this morning it’s decided what to do with its Opel operations in Europe and it will let us know shortly. The negotiations over selling Opel have been long and difficult. Reporter Alisa Roth wanted to know what happens when a company can’t seem to make a deal.
Alisa Roth: Most of the time, if a deal is going to work, it’s going to happen quickly.
David Harding works for Bain, a consulting firm. He advises companies about mergers and acquisitions.
David Harding: Well, deals are a lot like produce on the shelf — you want to keep them moving. Anything that sits there means there’s something wrong.
The foot-dragging can come from either the buyer or the seller.
James Brock teaches economics at Miami University. He says dawdling often means one of the companies doesn’t know what it really wants.
James Brock: It becomes indicative of a kind of lack of focus, a lack of drive, a lack of purpose maybe.
GM’s in so much trouble now, most people say it has to sell Opel. Brock says GM’s not sure if it wants to sell, because it thinks Opel could be valuable again someday.
I’m Alisa Roth for Marketplace.
Stories You Might Like
There’s a lot happening in the world. Through it all, Marketplace is here for you.
You rely on Marketplace to break down the world’s events and tell you how it affects you in a fact-based, approachable way. We rely on your financial support to keep making that possible.
Your donation today powers the independent journalism that you rely on. For just $5/month, you can help sustain Marketplace so we can keep reporting on the things that matter to you.
