By on December 5, 2013

Renaissance Center

Ally Financial, the bank holding company formerly known as GMAC, is still a major part of the United States federal government investment portfolio in the five years since it was bailed out at the start of the Great Recession. Yet, it may be able to soon divest its ownership in part due to General Motors selling their remaining shares.

GM announced Wednesday that they would sell off their remaining 132,000 shares — or 8.5 percent of the total shares available — of the finance company through a private placement. The action would clear the way for Ally to begin final preparations for their long-awaited IPO to the investing public. In turn, the federal government could sell part if not all of their ownership, currently holding at 64 percent.

When the IPO will be offered is still unknown, though both GM and Ally are hoping rising interest in the latter by investors will light the path toward complete freedom from government ownership. In the meantime, GM will net $900 million from the private placement.

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2 Comments on “General Motors to Divest Remaining Ownership of Ally Financial...”

  • avatar

    So, did you hear the one about the Jew who finally decided to comment on this post? Looks to me like some free advertising space for Kutcher’s Country Club, the last of the great Borscht belt hotels. Visit them often and tell them Doug-g sent you.

  • avatar

    I didn’t even know GM still owned any part of Ally. didn’t they set up a competing auto-finance-only entity? Well, partially competing, since Ally is still stuck with part of the ill-fated home mortgage portfolio.

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