Cincinnati Post – General Motors Corp. on Monday agreed to sell a majority share in its credit arm Monday, a defensive move analysts said would fund employee buyouts and help the beleaguered auto maker’s balance sheet. Cerberus Capital Management will buy 51 percent of General Motors Acceptance Corp. for $14 billion.<\/p>\n
Under the terms of the deal, GM, which lost $10.6 billion last year, will get approximately $10 billion when the transaction closes, probably in the fourth quarter, and another $4 billion over the next three years. Cerberus, a $16 billion hedge fund founded in 1992, is a turn-around specialist named after the mythical dog that guarded the entrance to the underworld.<\/p>\n
Analysts were generally supportive of the deal, but investors were more lukewarm. In trading Monday, GM’s shares fell $1.13, or 5.3 percent, to close at $20.14.<\/p>\n