GMAC Stake Sold to Investor Group for $14 billion

Published on:
12 September 2006 at 10:21 a.m. ET

Written by: Unknown Author –

http://www.insidearm.com/news/00011527-gmac-stake-sold-to-investor-group-for-14-/

If only you had had an extra $14 billion lying around (check the couch), you might have had a chance to beat out a consortium led by Cerberus Capital Management in its 51 percent buy-out of General Motors Acceptance Corp. ? the financial arm of General Motors.

The long-anticipated sale, announced Monday and reported by Reuters, generates a considerable amount of much-needed cash for the world’s largest automaker. General Motors reported a $10.5 billion dollar loss in 2005. GMAC also benefits; the move restores the financial unit’s damaged credit rating back to investment-grade status.

You can read more about this story at GM to sell 51 per cent to Cerberus Group.