GMAC Attracts Bids For ResCap Unit (BLK, BX, GS, C)
GMAC’s Residential Capital unit is attracting many suitors. BlackRock Inc. (NYSE: BLK) and Blackstone Inc. (NYSE: BX) have expressed their interest in purchasing the unit. Famed investor Wilbur Ross is also said to be interested in the unit. GMAC has hired Goldman Sachs (NYSE: GS) and Citigroup Inc. (NYSE: C) as its advisors.
A GMAC’ spokesperson said, “"We are currently evaluating strategic alternatives for the mortgage business with a goal of containing risk and preserving value in the business." GMAC confirmed that its mortgage unit is still reeling under the losses. However the company’s auto finance business generated profits in 2009. GMAC is majority-owned by the US government. Its other investors include Cerberus Capital Management and General Motors.
GMAC had recently injected $2.8 billion into its Residential Capital Unit for reviving the business.
