GM down as it looks to sell Adam Opel unit

General Motors (GM : NYSE : US$28.85), Net Change: -0.60, % Change: -2.04%, Volume: 11,684,470
On the block. General Motors is revisiting plans to sell its Adam Opel unit if it can get an offer more favorable than the one it turned down two years ago, according to sources close to the situation. Despite a year-long overhaul of Opel’s operations, the unit has failed to become profitable and also competes directly with GM’s Chevrolet unit in Europe.

In a memo to employees, Opel CEO Karl-Fredrich Stracke denied the reports, calling them pure speculation. He said, “I’m asking myself why this issue is surfacing again now that Opel is back on the route to success. We proved that the company is on a very good way and therefore represents a great value for GM.”

In 2009, GM nearly unloaded Opel to a consortium led by Magna (MGA) for €500 million, but backed out at the last minute as Magna would have gained access to some of GM’s intellectual property. Separately, Ally Financial, formerly GM’s financing arm, will be delaying its $6-billion IPO due to poor market conditions, according to two people close to the matter. The U.S. Treasury holds a 74% in Ally as part of a $17.2 billion bailout during the financial crisis, and was looking to generate $5 billion in the IPO. None of the involved parties were available for comment.

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