GM, the largest auto company in the world, is believed to be considering the sale of a significant share in its GMAC Commercial Mortgage business, which has a business portfolio of $250 billion, in order to bring in around $1 billion to revitalize its accounts.
The move comes barely a year after GM came very close to selling the whole business to Deutsche Bank before negotiations broke down at a late stage. This time the car maker is believed to be only prepared to sell a portion of the profitable business, with a key criteria being that GM holds onto a significant equity stake, although potentially not a majority stake.
A number of interested parties, including private equity investors, pension funds and financial groups, are reportedly interested in the prize of a share in a section of the most profitable area of GM’s business.
We are not selling the unit but there were some investors who expressed an interest in investing in that business and we are amenable to that, so we have been in discussions with some parties, the FT quoted a GM spokesman as saying.
