GM sells 8.5 percent stake in Ally Financial

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Associated Press

Posted on December 12, 2013 at 10:01 AM

Updated Thursday, Dec 12 at 10:02 AM

DETROIT (AP) — General Motors says it has sold its 8.5 percent stake in Ally Financial for about $900 million.

The Detroit automaker said Thursday it expects to record a gain of $500 million from the deal in its fourth-quarter earnings.

It wouldn't say who bought the stake, which was sold in a private placement.

Ally is GM's former auto loan and mortgage arm. It had to be rescued by the U.S. government at the height of the financial crisis.

The Treasury Department still holds a 64 percent stake in Ally, with the rest held by a mix of institutional investors.

GM says the deal gives the company more financial flexibility. It says Ally will continue to make loans to GM dealers and customers.

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