In order to help strengthen its balance sheet, General Motors has announced that it will sell off 100 percent of its Fixed Rate Perpetual Preferred Stock, Series A, of Ally Financial Inc., its lending arm.
Total valuation for the shares has been announced at an even $1 billion, which will result in a book gain of $.3 billion, which will be recorded in Q1 2011.
The deal is being underwritten by a combination of Credit Suisse, Bank of America Merrill Lynch, Deutsche Bank Securities and Barclays Capital.
After the sale, GM will still hold a 9.9 percent interest in Ally through common stock.
