According to a Friday report in The Wall Street Journal, the Belgian investment firm RHJ International SA intends sweetening its bid for General Motors' (GM) European unit Opel, in an attempt to oust its Canadian rival Magna International Inc.

As per the information put forth by the sources in-the-know the RHJ move is essentially aimed at winning over the German government, which has shown preference for the Magna bid.

In its 'sweetened' offer, RHJ has now proposed to lower the amount of German taxpayer-funded loan guarantees, required to support the acquisition of the Opel and Vauxhall operations, to euro3.6 billion euros from euro3.8 billion. Going by the reports, the lower amount proposed by RHJ is nearly euro900 million less than the aid projected in Canadian partsmaker Magna International's offer!

Even though GM had signed a non-exclusive memorandum of understanding with Magna in May, it persisted with its negotiations with RHJ, which has earlier held some automotive assets of Ripplewood Holdings LLC. Insiders say that the officials of the trust - which controls 65 percent of Opel - favor either the RHJ bid or the option of rendering Opel insolvent.

Meanwhile, GM's board would review the bids for Opel, and discuss the matter out with the trust. The final decision would be made by GM, and would necessitate the due approval of the US Treasury.