GM looking for international financing arm

Old friends may make new deal

Looking at Ally as an ally

General Motors expressed its interest in acquiring Ally’s international operations after the bank filed for bankruptcy in its mortgage branch. As part of Ally’s announcement that it was putting its ResCap mortgage subsidiaries in Chapter 11 reorganization, it said it was also beginning the process of exploring “strategic alternatives for its international businesses.”

Ally is seeking to divest more than $30 billion of assets in Canada and Mexico as well as in Europe and South America. Formerly the financial arm of General Motors known as GMAC, Ally has struggled to repay some $12 billion in bailout cash it still owes U.S. taxpayers. While Ally says it’s “absolutely not” looking to sell its core auto lending business and GM also signaled Monday that it is likely not interested in acquiring it, the car maker is looking closely at Ally’s assets in Canada and beyond.

GM CEO Dan Akerson stated that the automaker is “the natural buyer,” for Ally’s international business, but stressed that the car company will not overpay. “They have not been as robust as we quite frankly wanted internationally,”Akerson said. “But they have the infrastructure there, and they have the distribution channels there, which would facilitate our move into it reasonably quickly.”

General Motors (GM : NYSE : US$21.40), Net Change: -0.23, % Change: -1.06%, Volume: 6,121,858

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