Berlin  – Overnight talks on the future of carmaker Opel ended early Saturday with an agreement among the German federal and state governments, its parent firm General Motors (GM) Corp, buyer Magna International Inc and the US Treasury Department.

Announcing the breakthrough after more than six hours of negotiations through the night in Berlin, German Finance Minister Peer Steinbrueck warned that the deal has high risks for the government.

The talks, hosted by German Chancellor Angela Merkel, were the second time this week that key government ministers met with GM and Canadian car-parts manufacturer Magna, which is seeking to take over Opel.

The complex talks are a bid to rescue GM’s European operations from the US car giant’s anticipated bankruptcy. GM is widely expected to seek court protection from its creditors on Monday to conduct an extensive reorganization.

Steinbrueck said the German government had stuck by its refusal to increase a pledged 1.5-billion-euro (2.1-billion-dollar) bridging loan.

GM had unexpectedly sought more money while Berlin was looking for assurances that taxpayer money invested in Opel would remain in Germany.

Steinbrueck emphasized early Saturday that there would be no additional financing from the federal government in Berlin, even with parliamentary elections looming.

The government was eager to show that it would not be subject to “extortion,” he said. (dpa)