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GMAC tells employees Nov. 30 is target date for closing sale of stake

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General Motors Corp.'s lending arm, GMAC Financial Services, has told employees that it is targeting Nov. 30 as the closing date for the sale of a controlling stake in the unit to a group of investors.

GM agreed to sell 51 per cent of GMAC to a consortium led by Cerberus Capital Management LP in April for US$14 billion and initially targeted a closing date for the sale in the fourth quarter, but never gave an actual date. The deal had to clear several hurdles, including regulatory approval, and GM is still talking with the Federal Deposit Insurance Corporation about issues related to a change in control of the GMAC Automotive Bank.

In a document sent to GMAC employees related to employee-benefit options, GMAC said the targeted closing date for the deal is now Nov. 30. Portions of the document were provided to Dow Jones Newswires by Mainstay Capital Management, which manages assets for many GM employees.

GMAC spokeswoman Toni Simonetti confirmed the target date.

``Yes, it does refer to the targeted closing date and we're working very hard to meet all of the requirements to get there,'' she said. Discussions with the FDIC are ongoing, but did not provide specific details, she said.

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GMAC tells employees Nov. 30 is target date for closing sale of stake
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