View Full Version : General Motors sells majority interest in Fin. Div

03-24-2006, 03:26 PM
General Motors sells majority interest in part of its finance division
Associated Press WorldStream via NewsEdge Corporation :

DETROIT_General Motors Corp. said Thursday that a majority interest in part of its finance division has been sold to Kohlberg Kravis Roberts & Co., Five Mile Capital Partners and Goldman Sachs Capital Partners.

General Motors Acceptance Corp. said it will receive almost $9 billion (7.46 billion) in cash from the sale of a 78 percent equity in its commercial mortgage unit, GMAC Commercial Holding Corp. The division was sold for more than $1.5 billion (1.24 billion) in cash, and the holding corporation also repaid $7.3 billion (6.05 billion) in inter-company loans to GMAC at closing.

The sale is separate from GM's announced plans to sell a controlling interest in GMAC.

<font color="blue">This is the only option that they really have at this point. We should expect a lot more announcements such as this in the next few months.
In contrast to the news coming out of Detroit from GM, this was announced today in Tokyo by Toyota:
Toyota to develop hybrid systems with Subaru-maker Fuji Heavy (http://news.yahoo.com/s/afp/20060311/bs_afp/japanautocompany;_ylt=Av9EC.e.1NwEYcvptrXHEvmyBhIF ;_ylu=X3oDMTA5aHJvMDdwBHNlYwN5bmNhdA--)

It should be noted that Toyota became the top shareholder of Fuji Heavy last year when it purchased Fuji Heavy shares from GM. </font color>

Debra Li

03-25-2006, 12:21 PM
Yes, the really frightening thing is that these are not the high cost, priced out the business Union/Health care monsters we all knew they would give up on. This is a very profitable part of the GM business.