Friday, April 1, 2011

General Motors (GM) Sells Delphi Stake for $3.8 Billion

General Motors (NYSE:GM) said in a late press release Thursday it is selling its stake in Delphi Automotive for $3.8 billion.

GM CFO Dan Ammann said in the release, “We are systematically delivering on our commitment to strengthen and simplify our balance sheet.”

The sale involved the Class A Membership Interest in Delphi, which GM acquired in the last quarter of 2009 when Delphi was created.

In the first quarter of 2011, General Motors will book a gain of about $1.6 billion in connection to the transaction.

Delphi is also purchasing $594 million for shares held by the Pension Benefit Guaranty Corp.

GM closed Thursday at $31.03, falling $0.52, or 1.65 percent.

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