|GM Prices $1 Billion Sale of Ally Preferred Shares|
|Written by Ryan Gray|
|Tuesday, 22 March 2011 13:36|
DETROIT - General Motors Company announced the sale of all of its shares of Fixed Rate Perpetual Preferred Stock, Series A, of Ally Financial Inc. in a registered public offering for a total of $1.0 billion.
The shares, which represent 100 percent of the Ally Series A preferred stock outstanding, have an aggregate liquidation preference of $1 billion.
"Today, we are taking another step forward in our strategy to strengthen and simplify the company's balance sheet," Chris Liddell, vice chairman and CFO, said in a statement today.
GM said the transaction will result in a book gain of $0.3 billion to be recorded in the first quarter of 2011. Following the sale, GM's investment in Ally Financial will consist of a 9.9 percent interest in Ally common stock.
|Last Updated on Tuesday, 22 March 2011 13:39|