G.M. is on the verge of acquiring AmeriCredit Corporation, a Fort Worth based credit company with assets estimated at $10 billion. The purpose of the acquisition is to provide in-house financing for the Government owned car company. “This acquisition supports our efforts to design, build and sell the world’s best vehicles by expanding the financing options we can offer to consumers who want to buy G.M. vehicles,” Edward E. Whitacre Jr., G.M.’s chairman and chief executive, said in a statement.
While consumers are struggling to improve credit and restructure personal loans, G.M. hopes to do the same. G.M. said that the deal would not hurt its efforts to regain an investment-grade credit rating.
In addition, the move could help strengthen the prospects of a G.M. initial public offering, in hopes of disposing of the government’s majority stake. With the passage of the new consumer protection bill any institution that loans money would be subject to as yet unspecified requirements that would allow more government controls of offending companies.
While G.M. wants to close the deal by the fourth quarter at least two law firms are investigating AmeriCredit possible breaches of fiduciary duty by the Board of Directors. Under the terms of the deal, G.M. will pay $24.50 per share. But the stock has been rising and some analysts believe the stock could rise above $26.00 per share causing some stockholders to question the sale.
