* Chancellor Merkel still expects to reach a deal with GM * Bild reports Berlin gives condition for rival RHJ bid * Fiat's interest in Opel has not changed - source (Recasts adding comments from Merkel, sources) By Thorsten Severin and Christiaan Hetzner BERLIN/FRANKFURT, Aug 26 (Reuters) - The German government signalled on Wednesday that talks between Berlin and General Motors [GM.UL] over the fate of its European unit Opel are threatening to drag on, raising the spectre of ...
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