Home
Business
Metro
Nation
World
Sports
Feature
Opinion
View more »Opinion Columns
Wan LixinOpinion deputy editor of Shanghai Daily
Juvenile education requires input from all actors in society
Celebrating diversity in our food supply
Sunday
- Subscribe
Related News
GM talks to SAIC on stake sale
By Soyoung Kim |
February 13, 2009, Friday
|
Print Edition
Print Edition
GENERAL Motors Corp has held talks with China's SAIC Motor Corp about selling part of its stake in their joint venture or other assets as the United States auto maker races to raise cash, two sources familiar with the discussions said.
GM approached SAIC Motor recently with an offer to sell some of its stake in their 50-50 joint venture that builds and markets Buick, Cadillac and Chevrolet models in China, the sources said.
The sources requested anonymity because they were not authorized to discuss the preliminary talks.
Such a deal would make GM a minority partner at its decade-old flagship venture in China, Shanghai General Motors Ltd, considered to be one of the remaining crown jewels in its global operations.
The talks with SAIC Motor are taking place as GM pushes to win big concessions from its bondholders and major union to show it can become viable under a US$13.4-billion US government bailout.
GM has until Tuesday to submit a new restructuring plan to the US government detailing the progress it has made in cutting costs and shoring up its balance sheet.
"It is feasible that GM could cut its stake in Shanghai GM to help raise money," said analyst John Zeng of IHS Global Insight. "GM could manage to buy back the shares later if it can stave off bankruptcy."
GM approached SAIC Motor recently with an offer to sell some of its stake in their 50-50 joint venture that builds and markets Buick, Cadillac and Chevrolet models in China, the sources said.
The sources requested anonymity because they were not authorized to discuss the preliminary talks.
Such a deal would make GM a minority partner at its decade-old flagship venture in China, Shanghai General Motors Ltd, considered to be one of the remaining crown jewels in its global operations.
The talks with SAIC Motor are taking place as GM pushes to win big concessions from its bondholders and major union to show it can become viable under a US$13.4-billion US government bailout.
GM has until Tuesday to submit a new restructuring plan to the US government detailing the progress it has made in cutting costs and shoring up its balance sheet.
"It is feasible that GM could cut its stake in Shanghai GM to help raise money," said analyst John Zeng of IHS Global Insight. "GM could manage to buy back the shares later if it can stave off bankruptcy."
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
