GM had initial talks on Hummer with Deripaska
Written on August 14, 2008
General Motors Corp (GM.N: Quote, Profile, Research, Stock Buzz) has had preliminary contact with Russian oligarch Oleg Deripaska on a possible sale of its Hummer brand, sources familiar with the matter said.
The talks with Russia’s richest man have been exploratory as Hummer is not officially on auction yet, the sources said.
GM declined to comment. A spokesman for Deripaska could not be immediately reached.
Deripaska expressed interest in the brand and GM has responded, but no official discussions have taken place, the sources said.
The contact between Deripaska and GM comes after reports that the Russian billionaire had been in negotiations with the largest U.S. automaker about its expansion plans for Russia pay day loan.
One of the sources said Deripaska would like to get Canadian auto parts giant Magna International (MGa.TO: Quote, Profile, Research, Stock Buzz) involved in Hummer production if he ends up buying the brand.
In September 2007, Deripaska acquired a 20 percent stake in Magna for $1.54 billion and has pledged to help the supplier expand in Russia, one of the world’s fastest growing auto markets and one where the Hummer brand has a strong cachet.
GM, which has said it will try to raise up to $4 billion through asset sales, has hired Citibank to consider all strategic options for Hummer.
Filed in: economics.