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GM in Talks to Sell GMAC Stake

General Motors says it is in talks with a New York hedge fund to sell its stake in GMAC. An offer of $11 billion or more is expected.

General Motors Corp. is in talks to sell a 51 percent stake in General Motors Acceptance Corp. to an investor group led by hedge fund Cerberus Capital Management, according to The Wall Street Journal.

The report in Thursday's edition says that GM has settled upon the broad structure of an agreement with the Cerberus, a hedge fund and private-equity group based in New York. Cerberus is expected to offer $11 billion or more for the GMAC stake.

The newspaper's report indicated that technical issues remain, and the automaker's board has not yet given its approval for the deal. In October, GM said  it planned to sell a controlling stake in GMAC, which loans money for purchases of its cars, to a strategic partner in order to restore the financing unit's credit rating to investment-grade status.

The move takes place after GM announced plans to restructure in the wake of billions of dollars in losses reported for 2005. The move also follows several labor moves by the company in recent weeks.