Malaysia PM says still talking to GM on Proton

KUALA LUMPUR, Apr 2 (Reuters) Malaysia is still talking with General Motors Corp for a possible tie-up with state-controlled carmaker Proton Holdings , Prime Minister Abdullah Ahmad Badawi said on Monday.

German carmaker Volkswagen AG had been seen as the frontrunner to partner Proton until last Friday, when a Singapore newspaper reported that Volkswagen had broken off the talks.

Abdullah declined to give any details on the status of talks with either Volkswagen or General Motors and said the government was now waiting for Proton itself to make a decision.

Reuters SBA DB0802