Reuters: Bankruptcy News: UPDATE 1-GM interested in Ally's internat'l ops-Bloomberg

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UPDATE 1-GM interested in Ally's internat'l ops-Bloomberg May 14th 2012, 21:25 Mon May 14, 2012 5:25pm EDT DETROIT May 14 (Reuters) - General Motors Co, the largest U.S. automaker, is interested in buying Ally Financial Inc's international operations, GM's chief executive told Bloomberg on Monday. "We're interested in it, but we're not going to bleed to buy it," CEO Dan Akerson told Bloomberg in an interview. "We're the natural buyer." A GM spokesman confirmed Akerson's comments. Ally is GM's former in-house financing arm. GM accounted for about 34 percent of Ally's loan originations in the most recent quarter, while Chrysler Group LLC represented 16 percent. Ally's health remains crucial to the U.S. auto industry and GM depends heavily on the lender. About 80 percent of the credit that GM dealers in the United States use to finance their inventories, known as "floorplan financing," is from Ally. Ally's mortgage unit filed for bankruptcy protection earlier on Monday and said it will sell some international operations to repay $12 billion in U.S. government loans stemming from its bailout. GM is "probably not" interested in acquiring Ally's U.S. operations, Akerson told Bloomberg. UBS analyst Colin Langan said GM could be interested in parts of Ally's U.S. operations, such as its dealer wholesale and leasing units. GM could pay $7.6 billion for Ally's international, dealer wholesale and lease operations, he said. "We expect discussions of the potential acquisition will increase over the next few months; however a sale would likely be a year away," Langan said in a research note. GM has its own in-house financing arm, GM Financial, which provides loans mostly in the United States and Canada. Its lack of international exposure represents a weakness for GM that Ally's operations could fill, Langan added. Link this Share this Digg this Email Reprints

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