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Investor firm to tap GM’s fresh billions to buy Delphi

Posted Friday, Jun 5, 2009, 11:38 am in Employee News

Flush with $30 billion in new capital from the U.S. government, General Motors Corp. has agreed to finance a private-equity firm’s buyout of bankrupt auto-parts company Delphi Corp., the Wall Street Journal reported.

GM will provide more than $2.5 billion of the $3.6 billion necessary for Beverly Hills, Calif.-based buyout firm Platinum Equity to gain control of Delphi, according to a person familiar with the matter told the Journal. Since Monday, GM and the government have been mum about who would provide the money to help Delphi emerge from bankruptcy. A GM spokeswoman wouldn’t comment on specific figures, but noted in a statement that funding for the Delphi buyout was “incorporated into GM’s revised viability plan,” the paper said.

Under the terms of the transaction, Platinum is expected to invest no more than $750 million, according to the person familiar with the deal, the Journal said. GM would provide the balance in financing, the story said. (Wall Street Journal)
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