The German government expects General Motors to decide by the end of the week between two bidders to buy its ailing Opel unit, Economy Minister Karl-Theodor zu Guttenberg said yesterday.

The GM board "should take a decision in principle" late today or tomorrow, he told reporters on the margins of a news conference about a new electric-car initiative.

Two suitors are still vying to buy Opel: Canadian auto parts maker Magna - which is backed by Russian state-owned Sberbank - and Brussels-based investment firm RHJ International.

The German government, which will foster the takeover with crucial loan guarantees, prefers the Magna bid because it fears RHJ will slash jobs as part of any corporate overhaul.

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