General Motors Co (GM) was submitted its bids on July along with other parties, but there were no assurances for the company to buy the operations successfully. This was what received from the filing done by the automaker GM with US Securities and Exchange Commission.
General Motors Co (GM) has announced – “its financial unit is from those bidders that Ally Financial Inc, auto lender is selling”. As per the reports, the GM Financial is hoping to enlarge the operations it’s conducting in the international markets and can make twice the fold of its overall assets. As said by analysts, Ally assets could draw bids between $2 billion and $4 billion. Ally spokeswoman said that the company gained interest from around 30 distinct parties so that it receives the assets and the officials were encouraged by the initial progress.
An analyst Matthew Stover from Guggenheim Securities said that it is a good thing to have control of financial services companies. They can possibly turn out as very profitable. In fact, if it’s counted on investment point-of-view then they can become good businesses. If it is counted on competitive point of view then the investment can help into sales market bringing more flexibility.
Ally Financial is 74% owned by U.S. Treasury and the company said in May that it sold operations in Europe, Mexico and Canada for pacing the repayment to United States taxpayers. GM’s 26 percent is owned by the U.S. Treasury. The sales are expected to be completed by the end of 2012 as announced by Michael Carpenter, Ally chief executive. He added in his statement that the lender had received offers from approximately 30 bidders.