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September 28th, 2009, 05:59 PM #1
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GM Can Buy 7% Of American Axle Stock In Return For Extending Aid
So GM couldn't stand on its own without a taxpayer bailout and now they are bailing out other companies via $110M cash payment and $100M loan???? Seems to me this is just a way for Obummer to side step the taxpayers and bail out everyone under the sun. Thoughts? Am I wrong in my conclusion?
http://money.cnn.com/news/newsfeeds/...0_FORTUNE5.htm
DETROIT -(Dow Jones)- General Motors Co. can purchase up to 7% of stock in American Axle & Manufacturing Holdings Inc. (AAM) in return for spending $210 million to bail out the struggling parts supplier, according to a regulatory filing Friday.
As part of a deal reached last week, GM agreed to make a $110 million payment and a $100 million loan to American Axle - which GM used to own - as well as stock warrants from American Axle to its former parent.
American Axle said the $110 million payment stems from costs and contracts associated with GM's June bankruptcy.
The agreements ended months of negotiations aimed at helping American Axle avoid following many of its peers into bankruptcy protection.
The parts maker will issue additional warrants to allow GM to buy another 12.5% of the company.
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