GM to sell GMAC stake to Cerberus group
NEW YORK (Reuters) – General Motors Corp. on Monday said it
had agreed to sell a 51 percent stake in its financing arm,
General Motors Acceptance Corp., to a consortium led by hedge
fund Cerberus Capital Management LP for $14 billion, payable
over three years.
The Cerberus-led investor group, which includes the private
equity unit of Citigroup and Japan’s Aozora Bank Ltd., had been
viewed as the front-runner for the GMAC stake in what has been
a complicated and drawn-out bidding process.
GM said GMAC will continue to be managed by its existing
executive management following the deal, which is expected to
close in the fourth quarter of 2006.