Business
Re Agreement
Re Agreement.
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[{"type":"text","content":"\n \n GM Reaches Agreement to Sell Controlling Stake in GMAC\n\n Cerberus Led Consortium To Buy 51 Percent Of GMAC Equity\n\n GM To Receive $14 Billion In Cash Over Three-Year Period\n\n DETROIT, April 3 -- General Motors Corp. (NYSE: GM) today announced it has \nentered into a definitive agreement to sell a 51-percent controlling interest \nin General Motors Acceptance Corp. (GMAC) to a consortium of investors led by \nCerberus Capital Management, L.P., a private investment firm, and including \nCitigroup Inc., and Aozora Bank Ltd. GM expects to receive approximately $14 \nbillion in cash from this transaction over three years, including \ndistributions from GMAC, with an estimated $10 billion by closing.\n The transaction strengthens GMAC's ability to support GM's automotive \noperations, improves GMAC's access to cost-effective funding, provides \nsignificant liquidity to GM and allows GM to continue to participate in the \nprofitability of GMAC over the long term through its 49-percent ownership \nstake. \n \"We look forward to working with Cerberus to maintain and grow GMAC's \ntraditional strong performance and contribution to the GM family,\" said GM \nChairman and Chief Executive Officer Rick Wagoner. \"This agreement is another \nimportant milestone in the turnaround of General Motors. It creates a \nstronger GMAC while preserving the mutually beneficial relationship between GM \nand GMAC. At the same time, it provides significant liquidity to support our \nNorth American turnaround plan, finance future GM growth initiatives, \nstrengthen our balance sheet and fund other corporate priorities.\n \"Over the last nine months we have been aggressively implementing our \nNorth American turnaround plan,\" Wagoner said. \"We've made some big moves, \nsuch as the health-care agreement with the United Auto Workers union; the \nmanufacturing capacity plan; changes to our salaried health-care and pension \nplans; an accelerated attrition plan for hourly employees; and a complete \noverhaul of our marketing strategy. These bold initiatives are designed to \nimmediately improve our competitiveness and position GM for long-term success \nand today's transition is a further step in that direction.\" \n The GM Board of Directors approved the sale in a special meeting on Sunday \nwhich followed extensive consideration of this transactio...