General Motors Confirmed Intention to Sell Isuzu S

The car world’s biggest auto concern – General Motors Corp. officially imparted on its intention to sell 7.9% of Isuzu Motors Ltd. in joint press release. The deal cost will amount to nearly $300 million. The purchasers are Itochu Corp. and Mitsubishi Corp., the two Japanese trading companies; as well joined by Japan-scale second biggest bank group’s branch company – Mizuho Corporate Bank.

In fact, the first information about the coming deal appeared as rumor late in March, 2006 but General Motors refused to comment it.

The finances raised from the deal General Motors is planning to invest to providing US region business infrastructure restructuring which threatens to put the concern on the verge of bankruptcy. On the 6th of May GM yet sold shares holding of Suzuki Motors measured in $2 billion having reserved 3% in company shares stock only. In addition late in 2005 GM sold the whole its stock holding (20%) of Fuji Heavy Industries, the Subaru cars manufacturer.

As a record, General Motors purchased 34% of Isuzu shares in 1971; in 1998 this figure rose to 49%. In 2002 when GM started to suffer US market recession it had to sell up to 12% finally rest which were reduced even to 7.9 in 2005.