GM board opts to keep Opel

The board of General Motors Co has opted to keep Opel, undoing months of painstaking negotiations to sell the European unit to a Russian-backed group led by Canada's Magna.

GM confirmed the decision made by its 13-member board after a meeting of directors on Tuesday in Detroit, saying that improving business conditions and the strategic importance of Opel to its operations had prompted the decision.

"GM will soon present its restructuring plan to Germany and other governments and hopes for its favorable consideration," GM Chief Executive Fritz Henderson said in a statement.