In the first AP news release K. states that he was aware of the rumors and they decided to go ahead so as to clear up any uncertainty in the market as to his intentions. Passive investment or hostile takeover? He would be a "natural" to make some move because of his history and massive amount of GM holdings at the present. When companies get in trouble one has to look at the large non-institutional holders as to what their actions might be. Having said all that, I certainly wasn't smart enough to know any of this. SteveD
Ahh, so K himself says there were rumors, but no civilians were privvy. After todays 'surprise' S&P cut, I'm pretty sure the whole thing was as orchestrated as a Rockettes line dance.
^^^^^^^^^^^^^^^ Mostly like my 1995 GM olds and when it was in shop last, non GM mechanic suggested exspensive GM parts because of better quality , and he liked the better GM warrenty on GM parts .Agreed in that case. Ford has always made good trucks. GM had been in a lengthy, polar bear trend since Jan2004,; and Wellsfargo Bank had a much better fixed rate 30 year mortgage than GMAC lately , however some GM buyers lately like that 50% off . Toyota, Datson/Nissan and Honda seem to have better over all quality, especially with USA manufactoring plants;; consumer reports info supports much of that observation .
"07:27 GM General Motors may be pressed to sell financial arm - Financial Times (30.76 ) The Financial Times reports that the downgrade of GM to junk bond status last week was a grim omen for investors in the carmaker. But could GM escape the worst effect of its dire credit rating by selling part or all of GMAC? S&P's raised the prospect of a partial sale in its announcement of the downgrade. At the same time, many on Wall St. were speculating that GM could be pressed by Kirk Kerkorian into raising large sums of cash through a sale of GMAC. The logic of a separation would be to secure a credit rating for the finance arm higher than that of GM, cutting borrowing costs for the business and significantly boosting its profits. GMAC is the co's profits powerhouse, forecasting net income this year of $2.5 bln. It is so important that before the co's recent crisis GM was often referred to as a "bank on wheels". "It has long been the case that a sum of the parts valuation for GM yielded a value far in excess of its mkt value," said Michael Bruynesteyn, analyst at Prudential. He ests GMAC is worth $20.7 bln, vs GM's mkt value of $17.4 bln." nitro