GM To Sell The Rest of its Suzuki Stake

Posted by: Ian Rowley on November 17, 2008

Recent talk surrounding carmakers selling stakes in Japan has revolved around rumors that Ford may cash in part of its stake in Mazda. Today, though, Suzuki revealed that it is the subject of the latest money raising exercise by an American automaker. After the Tokyo market closed today, Suzuki revealed that GM will sell its remaining 3.2% stake in the Japanese automaker for about $230 million on Tuesday morning. “We are responding to GM’s need to let go of its stake to raise funds,” Suzuki Chairman Osamu Suzuki noted a statement. The deal marks an end to GM’s 27-year equity relationship with GM.

Suzuki will buy the same amount of shares in off-hours trading. GM last cuts its stake in Suzuki from 20% to 3.2% in March, 2006. That sale, a time when Suzuki’s stock was more than double its current price, raised $2 billion.

TrackBack URL for this entry: http://blogs.businessweek.com/mt/mt-tb.cgi/

Post a comment

 

About

Want the straight scoop on the auto industry? Detroit bureau chief David Welch , Dexter Roberts and Ian Rowley bring daily scoop, keen observations and provocative perspective on the auto business from around the globe. Read their take on such weighty issues as Detroit’s attempt at a comeback, Toyota’s quest for dominance and the search for an efficient car.

BW Mall - Sponsored Links

Buy a link now!