GM's (GM) Bark Turns into Bite: Places Bid for Ally's International Assets
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General Motors Co. (NYSE: GM) investors are feeling a little on edge Monday morning following news that the U.S. automaker is getting serious about expanding its financing arm.
Back in May, GM CEO Dan Akerson said that the Company was taking a good hard look at Ally Financial, specifically Ally's international operations. Akerson commented to Bloomberg: "We’re interested in it, but we’re not going to bleed to buy it...We’re the natural buyer." GM currently has its GM Financial unit, which reported improved numbers for its second quarter of 2012. Revs rose 48 percent while net income improved 42 percent. Loans delinquent from 31- to over 60-days also fell, improving the portfolio's overall structure.
At the time that Ally said it was looking to sell the operations, assets were estimated to be $30 billion. Areas Ally is looking to divest include ops in Canada, Mexico, Europe, and Latin America.
GM said the bidding process began in July and bidding is still in preliminary stages.
Ally was formerly known as GMAC before GM sold 51 percent to Cerberus Capital Management in 2006. It still is the largest auto lender in the U.S. and has no plans to sell of domestic operations.
Shares of GM are down 0.2 percent.
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Back in May, GM CEO Dan Akerson said that the Company was taking a good hard look at Ally Financial, specifically Ally's international operations. Akerson commented to Bloomberg: "We’re interested in it, but we’re not going to bleed to buy it...We’re the natural buyer." GM currently has its GM Financial unit, which reported improved numbers for its second quarter of 2012. Revs rose 48 percent while net income improved 42 percent. Loans delinquent from 31- to over 60-days also fell, improving the portfolio's overall structure.
At the time that Ally said it was looking to sell the operations, assets were estimated to be $30 billion. Areas Ally is looking to divest include ops in Canada, Mexico, Europe, and Latin America.
GM said the bidding process began in July and bidding is still in preliminary stages.
Ally was formerly known as GMAC before GM sold 51 percent to Cerberus Capital Management in 2006. It still is the largest auto lender in the U.S. and has no plans to sell of domestic operations.
Shares of GM are down 0.2 percent.
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