Bankrupt GM (GMGMQ) Rallies After Deal To Sell Saturn

Shares GM (OTC: GMGMQ) (NYSE: GM) are 25% higher after the bankrupt automaker announced a proposed deal to sell its Saturn brand to Penske Automotive Group. This news comes a few short days after a deal was announced to sell HUMMER.

Today, GM confirmed that the company and Penske Automotive Group entered a memorandum of understanding, under with Penske would obtain the rights to the brand as well as certain other Saturn assets. GM would continue production, on a contract basis, of the Saturn Aura, Vue and Outlook.

If completed, the deal would save more than 350 dealerships and 13,000 jobs at Saturn and its retailers in the United States, and would preserve the customer-focused Saturn brand.

Traders playing GMGMQ may feel that after all is said and done, the common shares will still have value. This appears to be a suckers bet.

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