Breaking News
FONT-SIZE Plus   Neg
Share SHARE

Reports: GM To Hold Talks With Isuzu On Acquiring 10% Stake

General Motors Co. (GM: Quote) will hold talks with Isuzu Motors Ltd. to acquire a stake of about 10 percent in the Japanese truckmaker, according to media reports over the weekend.

Through a capital and operational alliance, the companies plan to launch joint projects for commercial vehicles in Asia as well as Central and South America.

The two companies reportedly expect to commence talks in early May and are working on arranging a meeting between GM Chief Executive Officer Dan Akerson as well as Isuzu President Susumu Hosoi.

If the talks prove fruitful, General Motors may emerge as Isuzu's largest shareholder. Japanese trading house Mitsubishi Corp. is currently the largest shareholder in Isuzu with a 9.2 percent stake and cooperates with Isuzu in its operations in Thailand.

GM earlier had a 35-year capital alliance with Isuzu that was scrapped during the U.S. automaker's 2006 restructuring. At that time, GM held a 7.9 percent stake in Isuzu.

Toyota Motor Corp. (TM: Quote) bought a 5.9 percent stake in Isuzu after the earlier capital alliance between Isuzu and GM ended in 2006. A revival of the alliance between GM and Isuzu could likely trigger a response from Toyota.

According to reports, Isuzu might also end capital tie-up talks with Volkswagen AG (VLKAY.PK), although it might continue discussions on supplying pickup trucks to Volkswagen in Thailand.

GM closed Friday's trading on the NYSE at $23.50, down $0.22 or 0.93 percent on a volume of 10.50 million shares.

Register
To receive FREE breaking news email alerts for and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
With trading resuming following the long, holiday weekend, stocks showed a lack of direction throughout the trading session on Tuesday before ending the day mixed. The markets largely held on to the bulk of their recent gains. The Islamic State (IS), a Sunni extremist group previously known as Islamic State of Iraq and the Levant (ISIL), has released a video purporting to show the beheading of US journalist Steven Sotloff, media reports said Tuesday. According to reports, the video also showed a masked man threatening to execute a British man named David Haines. He also warned governments to stay away "this evil allian Less than a month after resigning from Congress, former House Majority Leader Eric Cantor, R-Virg., has made the move from Washington to Wall Street by joining boutique investment bank Moelis & Co. A statement from Moelis said Cantor will serve as Vice Chairman and Managing Director and also be elected to the company's Board of Directors.
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.