kevin2323

rosswell is there any possibe lway for cerberus to own the majority of gm? because I am about to invest some cash in gm and i hope that when they merge...gm stock will still exist and go up as a result of the merge.

RoswellGrey

I suppose anything is possible, Kevin, but I doubt they have the reserves to own the majority of GM. They'll probably get GM's financing arm entirely, which probably would be better for them. Cerberus is, after all, a financial company, NOT an automaker.

kevin2323

exactly what i was thinking....I am going to go ahead with the investment.....the risk lose 3k...the reward....40k + in 2-3 years

Andre@Edge

That is my guess as well roswell...

GM takes them selves out of Finance before it kills them, and takes down a competitor. Fire sale all inventory, take any good ideas, and trade marks like "hemi".

I can see the commercials now.... Two guys in trucks do battle, and just as one distroys the other we hear "there can be only one"
Then comes the GM sales pitch about putting all the best of both worlds into the truck line.

Cerberus restores the GMAC rating while adding 49% to the 51% they own now. If GM has to eat reserves and losses leverage then it would appear Cerberus has an upper hand in this.

I sure hope it wont happen, but no way of knowing what either automaker is willing to trade.

kevin2323

yea I think they are just going to swap and give cerberus the rest of gmc just like they want.

RoswellGrey

Another possibility, Andre. There have been rumors for quite some time that another GM division is going the way of Oldsmobile, either Buick or Pontiac. Let's see...Buick is roughly on par with Chrysler. Pontiac is roughly equal to Dodge. Substituting one or both of the Auburn Hills companies for one or both of the General Motors divisions would avoid any Justice Department interpretation that GM proposed the merger just to put a competitor out of business. (If I were to guess, I'd say they'd go with Chrysler in place of Buick. Dodge is, after all, mainly known for its trucks and GM already has a successful truck operation of its own.)

RoswellGrey

Well, the potential certainly is there. GM closed Monday at 6.51. In early 2001, it was about $55/share.

mopar2ya

Back from the future again... eh, roswell..?? Not sure how you do that... any chance you have one of them there DeLorean cars..??