Bonn, Germany - A David-and-Goliath takeover offer for the German factories of General Motors sent the share price of the bidding company, SolarWorld, crashing
16 per cent lower Wednesday.

SolarWorld, which assembles and installs electricity generating systems that rely on wind or the sun, offered 1 billion euros (1.25 billion dollars) for the Opel brand, four factories and a German research centre.

It said it intended to convert Opel into "Europe's first green automobile maker."

US-based General Motors, the world's biggest automobile manufacturer, took over the Adam Opel company 80 years ago.

SolarWorld AG, based in Bonn, Germany, demanded it receive a dowry from General Motors of 40,000 euros for each Opel employee it took over: "a compensation" sum of 1 billion euros.

As of early afternoon, SolarWorld stock was trading at 13.66 euros, down 16 per cent from Tuesday's close in Frankfurt.

SolarWorld offered to invest 250 million euros cash in the takeover and raise 750 million euros in bank loans, provided the banks were given a federal government guarantee for the sum.

General Motors has seen its share price plunge amid bankruptcy fears. Opel has asked for German state aid, but German politicians have been reluctant to help in a way that indirectly benefits the parent. (dpa)