GM bondholders haggle
Under the bondholdersâ€™ deal, they would swap a 51-percent stake in a restructured company for $27 billion in debt, a person with knowledge of the plan tells Reuters Detroit Bureau Chief Kevin Krolicki. The deal would give the United Auto Workers union 41-percent in a new General Motors while the U.S. government would not receive an equity stake, according to the person who asked not to be named because the offer had not yet been submitted.
A committee representing GM bondholders will present the alternative plan to the White House task force overseeing the restructuring of GM and Chrysler later today, the person said. GM said this week it was moving ahead with a plan to offer existing bondholders a 10-percent ownership of the restructured automaker. Under the GM plan, the US government would own a combined 89-percent of the new company.
GM Chief Executive Fritz Henderson said on Monday the automaker would file for bankruptcy if bondholders did not swap out of 90-percent of the $27 billion they are owed.
Deals of the day:
* There is “reasonable optimism” that a deal between Fiat and Chrysler could be announced on Thursday, Italy’s industry minister said after talking to Fiat’s top management.
* Korea Development Bank (KDB) is considering raising its stake in GM Daewoo, the South Korean unit of cash-strapped General Motors Corp, officials at the state-run bank said.
* U.S. investor J.C. Flowers is heading for a showdown with the German government by refusing to accept its tender offer for stricken Hypo Real Estate.
* Russian fixed-line operator Comstar has offered to acquire telecom company Synterra for $850 million in equity and cash, including debt, business daily Kommersant reported.
* Credit Suisse will sell a 30 percent stake in an asset management joint venture formed with Woori Finance Holdings back to the South Korean firm, both companies said.
* Anheuser-Busch InBev said it completed the sale of its minority stake in Tsingtao to ASAHI for $667 million.
* Deutsche Telekom plans to combine its German fixed-line and wireless units into a single division to help save costs, it said.
(PHOTO: A General Motors Pontiac sign is seen at an auto dealership in Dearborn, Michigan April 24, 2009. REUTERS/Rebecca Cook)