Financial Times FT.com

GM sells finance arm controlling stake for $7.4bn

By James Mackintosh in London, Richard Beales in New York and Bernard Simon in Toronto

Published: April 3 2006 14:32 | Last updated: April 3 2006 21:51

General Motors agreed to sell a controlling stake in its finance arm to an investment consortium led by Cerberus Capital on Monday for $7.4bn, securing the troubled carmaker a cash inflow of $14bn over the next three years.

GM secured the sale of 51 per cent of GM Acceptance Corp to Cerberus, Aozora, a Japanese bank owned by Cerberus, and Citigroup’s private equity arm.

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