Something may finally be going right for GM. CNN/Money reports that Citigroup, the largest bank in the U.S., and hedge fund Cerberus Capital Management are teaming up to bid for a controlling interest in GM's financial services arm.
Other bidders are emerging, including Wachovia Corp., the 4th largest U.S. bank, and Blackstone Group, a private equity firm. Legendary takeover firm Kohlberg Kravis & Roberts may be considering joining the Wachovia bid.
Although GMAC has been a profit engine for GM, higher borrowing costs driven by the high-risk ratings of GM debt are eating into GMAC's profit margins. Sale of a major stake in GMAC would raise cash for GM (as much as $15 billion) and help boost GMAC's credit rating.
Other bidders are emerging, including Wachovia Corp., the 4th largest U.S. bank, and Blackstone Group, a private equity firm. Legendary takeover firm Kohlberg Kravis & Roberts may be considering joining the Wachovia bid.
Although GMAC has been a profit engine for GM, higher borrowing costs driven by the high-risk ratings of GM debt are eating into GMAC's profit margins. Sale of a major stake in GMAC would raise cash for GM (as much as $15 billion) and help boost GMAC's credit rating.
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