As it doesn’t look like GM is going to receive any federal bailout anytime soon, it’s raising some cash to stay afloat by selling all of its stake in Suzuki – 3% or 16.413 million shares to be exact – back to the Japanese company, who will buy back its own shares at 1,363 yen (RM50.40) a share.
GM originally owned 20% of Suzuki but sold 17% back in 2006 in a transaction worth USD$1.96 billion. With this recent sale, it ceases to have any stake in the Japanese automaker. It also sold its 20% stake in Subaru in 2005, and part of that ex-GM stake is now owned by Toyota.
What’s next to go? Saab? Perhaps Buick will go to a Chinese company, since the brand is rather popular in China, doing even better there than in the US. There was also a story about it trying to flog off Hummer to Tata or Mahindra.
Perhaps at the end of the day Proton can buy GM for US$1 :P