BERLIN -(Dow Jones)- The German government regrets General Motors Co.'s decision not to sell Opel, Chancellor Angela Merkel's spokesman said in a statement Wednesday.

In a surprise move, GM's board late Tuesday decided it wants to retain its core European operations after talks over a possible sale dragged on for months.

Spokesman Ulrich Wilhelm said Germany expects GM to repay on time EUR1.5 billion in bridge financing meant to keep Opel afloat. That financing is due to expire Nov. 30. The government expects GM to strengthen Opel's viability as a company, he added.

Chancellor Angela Merkel has requested economics minister Rainer Bruederle to brief the cabinet on the matter Wednesday, Wilhelm said.

-By Patrick McGroarty, Dow Jones Newswires; +49 30 2888 4128; patrick.mcgroarty@dowjones.com

(END) Dow Jones Newswires

11-04-09 0129ET