Chinese automaker SAIC Motor Corp reaches deal take a stake of about 1 percent in General Motors

[The Straight Story]

SAIC agrees in principle to take 1 percent of GM IPO: source

(Reuters) - Top Chinese automaker SAIC Motor Corp Ltd (600104.SS) has reached an agreement in principle to take a stake of about 1 percent in General Motors Co GM.UL, a source with knowledge of the situation said on Monday.

Apart from further cementing their tie-up in China, SAIC was also taking part in the deal to gain access to GM's sales networks outside China, including in Europe, the source told Reuters.

The deal still needs the approval of the Chinese government, which will make a decision as early as Monday.

SAIC and GM operate two auto manufacturing ventures in China making cars, mini vans and pickup trucks.

SAIC and GM executives declined to comment.

http://www.reuters.com/article/idUSTRE6AB43H20101115