Now for some quick boring but important industry news – General Motors has announced the sale of all its shares of Fixed Rate Perpetual Preferred Stock, Series A, of Ally Financial Inc. in a registered public offering for a total of $1.0 billion.
The shares, which represent 100 percent of the Ally Series A preferred stock outstanding, have an aggregate liquidation preference of $1 billion.
“Today, we are taking another step forward in our strategy to strengthen and simplify the company’s balance sheet,” said Chris Liddell, vice chairman and chief financial officer.
GM said that the transaction will result in a book gain of $0.3 billion to be recorded in the first quarter of 2011.
– By: Omar Rana