andy82471

GM selling majority stake of commercial

51 posts in this topic

andy82471    0

http://news.yahoo.com/s/ap/20060323/ap_on_bi_ge/gm_gmac

DETROIT - General Motors Corp. said Thursday that it is selling a majority interest in its commercial mortgage division for $1.5 billion in cash to a private investment group.

In addition to the cash payment for a 78 percent stake in the business, GM said that GMAC Commercial Holding Corp. has also repaid $7.3 billion in intercompany loans as part of the deal. That would boost the total proceeds from the deal to almost $9 billion.

The announcement comes a day after the world's biggest automaker and its major supplier, Delphi Corp., said they plan to offer buyouts to more than 125,000 hourly workers under an agreement with the United Auto Workers. Workers are expected to start leaving GM by June 1.

GM is under enormous pressure to reverse its fortunes. It recently had to increase by $2 billion its reported 2005 loss to $10.6 billion. It has been losing U.S. market share to Asian automakers who are building cars that are among the most popular with American consumers.

GM shares rose 23 cents, or just over 1 percent, to $22.24 in early trading on the New York Stock Exchange.

The buyer group includes Kohlberg Kravis Roberts & Co., Five Mile Capital Partners and Goldman Sachs Capital Partners.

GM said the deal for the commercial mortgage unit stake is separate from GM's announced plans to sell a controlling interest in the its overall finance business, General Motors Acceptance Corp.

"This sale is good news for GMAC and provides GMAC with even greater liquidity," GMAC spokeswoman Joanne Krell said.

GMAC Commercial Holding also announced that it has changed its name to Capmark Financial Group Inc. The name change will be fully implemented in the second quarter of this year. Capmark "will launch with an investment-grade rating," Krell said.

GMAC said in August that it had agreed to sell a 60 percent stake in its commercial mortgage holding business to Kohlberg Kravis Roberts and the other partners, but no financial details were released at that time. The mortgage unit has a loan servicing portfolio of around $250 billion.

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Guest buickman   
Guest buickman

Now, with Stanly O'Neal of Merrill Lynch gone (with the Fiat funds of course), we sell part of GMAC to Goldman Sachs where John Bryan, long time member of the General Motors' Board also serves a director (as he does on British Petroleum, MPG anyone?). Well, at least Mr O'Neal's brother Rodney still reigns at Delphi. Time to WAKE UP and CLEAN HOUSE! Is there any wonder why this Board continues to back "Red Ink Rick"?

Buickman

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FUTURE_OF_GM    26

Well, the street and the analysts are FINALLY getting what they want.

Striping GM of it's assets to make a buck. They'll continue to do this until GMAC is sold too. Then they push GM on off the plank to rot at the bottom like the Titanic and Enron.

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Newbiewar    1

this might be a good thing... york wouldnt have done it unless 1.) Kirk benifited, and 2.) it was a financially good decision.

what this allows gm to do, is get a better day to day intrest rate on their operating costs, cutting the cost further of production...

its not a bad thing or it wouldnt have been done... there was a reason GM had a bad credit rating... and now it should be fixed

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usa1    0

GM is running out of assets to sell to raise money to cover its losses and committments. I hope GM can turn things around in a hurry. There's precious little buffer left.

Mark

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Guest buickman   
Guest buickman

How can anyone see the dismantling of GM as a good thing? Time to WAKE UP! I issued the warning bell a year ago, now it's become fashionable to call for the head of "Red Ink Rick".

Buickman

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Newbiewar    1

and one thing i noticed... is they are just selling the real estate portion... not the automotive sector... so they still have power to give 0% or what not...

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CaddyXLR-V    3

How can anyone see the dismantling of GM as a good thing? Time to WAKE UP! I issued the warning bell a year ago, now it's become fashionable to call for the head of "Red Ink Rick".

Buickman

Mortgages? Dismantling GM because they sold the mortgage division? Your just grasping as whatever you can to badmouth "Red Ink Rick" aren't you? What the hell does mortgages have to do with building great cars? GM= General Motors, there is no motors in mortgages. GM just raised cash for the employee buyouts, and returned the mortgage division back to investment grade. Yet you find a way to spin it as a bad thing. You say you want to see GM succeed, and that is your whole purpose, but to me it looks like you would rather take GM down just to bring your enemy Rick down. Your just mad because Rick shot you down, now you have to come whine to everyone here 10 times a day about him. Get a life. Go sell some cars or something.

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Mortgages? Dismantling GM because they sold the mortgage division? Your just grasping as whatever you can to badmouth  "Red Ink Rick" aren't you? What the hell does mortgages have to do with building great cars? GM= General Motors, there is no motors in mortgages. GM just raised cash for the employee buyouts, and returned the mortgage division back to investment grade. Yet you find a way to spin it as a bad thing.  You say you want to see GM succeed, and that is your whole purpose, but to me it looks like you would rather take GM down just to bring your enemy Rick down. Your just mad because Rick shot you down, now you have to come whine to everyone here 10 times a day about him. Get a life. Go sell some cars or something.

Sorry Buickman, but I'd have to agree with CaddyXLR-V on this one. Rick in last few months has negotiated a new healthcare deal with the UAW, cut exec pay, cut the divident, cut white collar jobs, capped pensions, raised cash by getting out of the Fuji and Suzuki alliance, came up with a competitive buyout package for Delphi/UAW workers, and raised much needed cash by selling off the Mortgage business. I still think he could get the boot in the near future but the guy's back is against the wall. Edited by I hope GMRULES again

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Buickman is right. Wagoner is absolutely to blame (along with Smith, Stempel, and Smith - sounds like a law firm).

Sure, GM is and has been in a number of non-automotive businesses since forever, but GM is dismantling nevertheless to pay off obligations. Not a good place to be. About the only businesses left to sell off are remaining stakes in Suzuki and Isuzu, the NUMMI stake, GMAC Bank, GMAC Insurance, GMAC Residential Mortgage, and GMAC Automotive Dealer/Consumer. GM (and later Ford) should have stayed in crisis mode back in the 70s. But that would have required a change in culture.

Game just about over. Toyota's continuous improvement philosophy culture has won.

Edited by buyacargetacheck

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CaddyXLR-V    3

Buickman is right.  Wagoner is absolutely to blame (along with Smith, Stempel, and Smith - sounds like a law firm).

Sure, GM is and has been in a number of non-automotive businesses since forever, but GM is dismantling nevertheless to pay off obligations.  Not a good place to be.  About the only businesses left to sell off are remaining stakes in Suzuki and Isuzu, the NUMMI stake, GMAC Bank, GMAC Insurance, GMAC Residential Mortgage, and GMAC Automotive Dealer/Consumer.  GM (and later Ford) should have stayed in crisis mode back in the 70s.  But that would have required a change in culture.

Game just about over.  Toyota's continuous improvement philosophy culture has won.

It is not his fault GM needs to sell them off. GM has been declining since Wagoner was in his 20s! All the cars that came out the past 5 years were done under someone elses watch. HHR, Tahoe, Solstice, and Lucerne, are all selling at list price or above. I bet the Aura will also. And the next CTS. Why does that have to be said 500 times for it sink in?

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Guest buickman   
Guest buickman

Wagoner is a surgeon, he cut the fat (11,000 at corporate HQ on West Grand), but proceeded to hit organs like Olds and now has struck the nervous system (GMAC). He has no idea how to grow the business and will most certainly have us bankrupt in short order. Then you blind followers can try and explain how it's really a good thing and how wonderful this fool is. You can't handle the truth.

Buickman

Edited by buickman

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daves87rs    330

Wagoner is a surgeon, he cut the fat (11,000 at corporate HQ on West Grand), but proceeded to hit organs like Olds and now has struck the nervous system (GMAC). He has no idea how to grow the business and will most certainly have us bankrupt in short order. Then you blind followers can try and explain how it's really a good thing and how wonderful this fool is. You can't handle the truth.

Buickman

Let me put this to you plain and simple: If GM can't make money selling cars, then they shouldn't even be in business.

It would be like trying to cut through your bull**it for facts.

There is nothing wrong with selling your money makers when things are rough.

It is not like GM couldn't dip into the next big thing ( like real estate :rolleyes: )

I would be a lot less worried about growing the business, they need to worry about

saving it.

GM needs to get back to making cars again. Period.

I'm not blind. I just use common sense......

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daves87rs    330

Well, the street and the analysts are FINALLY getting what they want.

Striping GM of it's assets to make a buck. They'll continue to do this until GMAC is sold too. Then they push GM on off the plank to rot at the bottom like the Titanic and Enron.

You have to have faith, my friend. :)

I don' think they will sell everything though....

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daves87rs    330

Sorry Buickman, but I'd have to agree with CaddyXLR-V on this one. Rick in last few months has negotiated a new healthcare deal with the UAW, cut exec pay, cut the divident, cut white collar jobs, capped pensions, raised cash by getting out of the Fuji and Suzuki alliance, came up with a competitive buyout package for Delphi/UAW workers, and raised much needed cash by selling off the Mortgage business. I still think he could get the boot in the near future but the guy's back is against the wall.

Agreed.

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Newbiewar    1

Sorry Buickman, but I'd have to agree with CaddyXLR-V on this one. Rick in last few months has negotiated a new healthcare deal with the UAW, cut exec pay, cut the divident, cut white collar jobs, capped pensions, raised cash by getting out of the Fuji and Suzuki alliance, came up with a competitive buyout package for Delphi/UAW workers, and raised much needed cash by selling off the Mortgage business. I still think he could get the boot in the near future but the guy's back is against the wall.

i think a lot of that has to do with york...

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CaddyXLR-V    3

Wagoner is a surgeon, he cut the fat (11,000 at corporate HQ on West Grand), but proceeded to hit organs like Olds and now has struck the nervous system (GMAC). He has no idea how to grow the business and will most certainly have us bankrupt in short order. Then you blind followers can try and explain how it's really a good thing and how wonderful this fool is. You can't handle the truth.

Buickman

You are blind because of your hatred for Wagoner. That is your drive, it is in every single post you have ever posted on here. You dont care about GM. You care about removing Wagoner. GM threw money at Olds in the late 90s, Olds got some of the best technology GM had at the time, with engines based off the northstar, the 2nd gen Aurora was a great car, but no one bought them. Olds was on life support when Wagoner became CEO. GM will not be losing money for the next 5 years, they just need the cash to make it through to when the contract will be negotiated, and some retirees start dying off. He is setting the stage for the future by buying out the workers, and cutting what is not needed, instead of trying to make a profit in the short term. Selling GMAC will get GM through the tough times, while returning it to investment grade, then things will start to get easier in the next few years. Your the only blind one here. It's not a coincidence that everyone of the insiders here dont agree with you either. Are you calling them blind too?

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Guest buickman   
Guest buickman

Read the last 6 annual reports. Look at market share, losses, credit ratings, market cap, and the last Consumers Reports. The numbers and facts don't lie, spinmasters do. I don't hate Wagoner, I hate what he's done to GM.

Buickman

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It was the clowns in charge in the 70's and 80's that refused to change or take the imports seriously that started GM's long slid, not Wagoner. If Wagoner is a surgeon than I guess when he took over in 2001 the patient was a walking time bomb with 4 blocked arteries and now somebody has to find a way to get them off life support.

Edited by I hope GMRULES again

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