GM Chairman: Company Not Thinking About New Alliances
01 Juni 2009 - 10:34PM
Dow Jones News
The chairman of General Motors Corp. (GM) said Monday the
company wasn't pursuing any fresh alliances following a fruitless
search for suitable partners over the past three years.
Kent Kresa told Dow Jones Newswires that the auto maker wasn't
thinking about more partnerships as part of the restructuring plan
that moved into bankruptcy court Monday.
GM's pursuit of fresh funding and added scale had seen it court
Renault-Nissan in 2006 after its failed tie-up with Fiat SpA
(FIATY) as well as with Chrysler.
Court documents filed Monday also revealed the company had held
talks with sovereign wealth funds and other potential partners, and
contemplated a $3 billion stock offering last fall.
Kresa also acknowledged "that there will be challenges" to its
bankruptcy plan, a reference to disgruntled bondholders who remain
unhappy with the terms of a debt-for-equity exchange that will
leave the group with a 10% stake in a "new GM", plus some
warrants.
He said GM was interviewing candidates for its board, the
majority of which will be replaced. The independence of the new
board is seen as the key bulwark against interference by its new
majority owner, the U.S. government.
Kresa also reiterated GM's line that its focus would be on
customers and product development, pledging that capital
expenditure wouldn't be cut during or after the bankruptcy
process.
-Sharon Terlep, Dow Jones Newswires; 248-204-5532;
sharon.terlep@dowjones.com