
By Jeff Green, Alan Ohnsman and Zachary R. Mider
Feb. 12 (Bloomberg) -- General Motors Corp., planning asset sales to keep $13.4 billion in U.S. loans, has attracted interest in its Hummer brand of light trucks from a Chinese company and a private-equity firm, people familiar with the talks said.
The pace of negotiations has intensified in the past few weeks, said the people, who wouldn’t name the suitors and asked not to be identified because the discussions are private. More meetings are scheduled this week, one person said.
“The Hummer review is progressing and an update is due by the end of the first quarter,” said GM spokeswoman Joanne Krell, who wouldn’t comment on any bidders.
Unloading the sport-utility vehicle unit would move GM closer to the goal of showing its future viability to the U.S. Treasury by Feb. 17. If the biggest U.S. automaker can’t prove its ability to return to profit, it could be told to give up the loans or use the cash for a government-funded bankruptcy.
“Given the volume of the brand and the economic situation, I don’t really see a tremendous value,” said Dennis Virag, president of Automotive Consulting Group in Ann Arbor, Michigan. He estimated Hummer might fetch $100 million or less.
http://www.bloomberg.com/apps/news?pid=20601109&sid=absQFSwYCEkY&refer=home
1 comment:
100 million is a ton less than the $1.5 billion tossed around for the purchase of Hummer this summer. They did it to themselves by letting the dealerships go and announcing the brand was up for sale so earlt!!
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