General Motors Corp. is in talks to sell a 51 percent stake in General Motors Acceptance Corp. to an investor group led by hedge fund Cerberus Capital Management, The Wall Street Journal said on Thursday.
The U.S. automaker has settled upon the broad structure of an agreement with the New York hedge fund and private-equity group, which are expected to offer $11 billion or more for GM’s GMAC stake, the report said.
Many technical issues remain, and the automaker’s board has not yet given its approval for the deal to sell GMAC, one of the largest consumer lenders in the United States, the Journal said.
GM said in October it wanted to sell a controlling stake in GMAC, which loans money for purchases of its cars, to a strategic partner in order to restore the financing unit’s credit rating to investment-grade status.
A sale would also help generate much-needed cash for GM, which earlier this month said its massive 2005 loss was actually $10.6 billion — $2 billion more than it had previously reported.