GM to sell 51% of GMAC for $14B.

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Apr 4, 2006 | 10:40 PM

#31

flowmotion

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Joined: Dec 2005

Posts: 1,502

Re: GM to sell 51% of GMAC for $14B.

Quote:

Originally Posted by WERM

Strictly from a business standpoint, this might be the best thing they could do for the shareholders...but they probably couldn't sell their auto business if they wanted to due to the level of debt...so they sell off the parts that are worth money...

From a ownership perspective, it really doesn't matter if autos gets sold or everything else gets sold -- it's just what name gets printed on the stock certificates.

And keep in mind, it does not matter what is good for GM, it's what good for GM stockholders that counts. Obviously they feel that having GMAC seperate will increase annual return over the long run -- especially because there's a non-zero chance that GM might be worth nothing someday.

Anyway the next step will be to spin off NA Operations from Global. You read it here first!