AP News

News Summary: Ally to sell Canada auto finance ops


OH, CANADA: Ally Financial Inc., the former finance arm of General Motors that was bailed out by the U.S. government, is selling its Canadian auto finance unit to Royal Bank of Canada for $4.1 billion.

PAYBACK: The deal is part of Ally's plan to accelerate repayment of the $17.2 billion bailout. So far Ally has repaid $5.8 billion. The U.S. Treasury owns 74 percent of Ally common stock plus $5.9 billion of preferred stock.

AT A PREMIUM: RBC is paying a $620 million premium over book value to buy Ally Credit Canada Limited and ResMor Trust.


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