General Motors might announce selling of GMAC stake today

General Motors might announce selling of GMAC stake today

General Motors Corp. is reportedly expected to announce their plans to sell a stake in the General Motors Acceptance Corp., its financial services business today. This deal can fetch them as much as $11 billion.

One of the interested parties is a consortium that includes hedge fund Cerberus Capital Management LP and the private equity unit of Citigroup. Another investment group led by private equity firm Kohlberg Kravis Roberts & Co. is said to be still interested in the GMAC stake.

General Motors had said last year that they wanted to sell a controlling stake in GMAC to a strategic partner in order to restore the financing unit’s credit rating to investment-grade status. They are struggling in their home market with increasing competition and consumer’s lack of interest in their vehicles.

The company filed its delayed annual report last week updating their financial results for several years.