Big car. Smaller and smaller offers.

April 9, 2009

HummerThe number of bidders for GM’s Hummer brand has narrowed down to three, with current offers ranging from $100 million to $200 million in cash, in addition to other commitments,┬ásources told Reuters.

That would be a further comedown from what was already a comedown — investment bankers initially estimated that┬áthe iconic gas guzzler could fetch between $500 million and $750 million, considering it a distressed asset.

Last month, GM turned back a Kentucky industrialist with a lowball bid, who had also put together plans for new powertrain options for Hummer, including a hybrid version of the H3 that would double its fuel economy from the current 14-to-18 miles per gallon, a source said.

That leaves the carmaker, which has lost about $82 billion since 2005, with one U.S. bidder and two from overseas, sources said.

The bidders include private equity and wealthy individuals. Automakers, even from emerging markets, are notably absent.


* Private equity firm Crescent Point, founded by former Morgan Stanley <MS.N> bankers, is looking to sell its controlling stake in Masterskill, Malaysia’s largest nursing training school, sources said, in a deal that could fetch more than $200 million.

* U.S. Bancorp unit U.S. Bank will buy the corporate trust bond administration business of AmeriServ Financial.

* France’s Sanofi-Aventis plans to buy Brazilian drugmaker Medley in a deal that values the company at 500 million euros and will turn Sanofi into the top generics manufacturer in Latin America.

* Japan’s Sharp Corp and Pioneer Corp said they would set up a joint venture to merge their optical disc businesses, aiming to beef up one of their focus operations and take a leading position in the growing Blu-ray disc market.

* The German government offered 1.39 euros per share to take over Hypo Real Estate, the stricken Munich-based lender it plans to seize control of and restructure.

* British Airways does not feel under pressure to obtain a quick merger deal in talks with Iberia, BA’s Chief Executive said, according to Spanish newspaper Expansion.

* Thailand’s biggest energy firm, PTT, is studying the possibility of merging its four main subsidiaries in a bid to cut costs and boost efficiency, its president said.

(Photo: REUTERS/Rick Wilking)

2 comments so far | RSS Comments RSS

So I guess 14 multiplied by two equals 18 these days…

Posted by Chris Sargent | Report as abusive

Call it a case of missing hyphens. We should have written “14-to-18 miles.” In fact, we’re updating the entry to say that.


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