General Motors may sell a stake in its commercial mortgage unit as the company tries to raise cash a week after forecasting its biggest quarterly loss in 13 years, Bloomberg News reported.
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“There has been interest from potential investors to invest in the commercial mortgage business,” spokeswoman Toni Simonetti told the news agency, adding that GM planned to retain “a significant equity stake” and that the unit had net income of $US200 million last year.
GM last week said it would seeking additional costs cuts and is working on a plan to slash losses after announcing it expected to lose about $1.50 a share in the first quarter because of rising health-care costs and lower car and truck sales, Bloomberg News noted.
According to Bloomberg News, the Wall Street Journal said GM could raise as much as $1 billion selling half of the GMAC unit, which may be valued at as much as $2 billion.
