GM to sell GMAC stake to Cerberus group

April 3, 2006

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.

Source: reuters

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