General Motors Corp. (NYSE:GM) is down to its last three bidders in the auction of its Hummer brand. Sources tell Reuters that the remaining candidates to purchase the giant SUV brand has been whittled down to three nonautomotive buyers.
According
The Deal Pipeline, buyout firm Platinum Equity LLC, which recently backed out of a deal to buy the Michigan assets of bankrupt auto supplier Delphi Corp. for $447 million in cash due to market conditions, is likely among the finalists. However the sources tell Reuters that no automakers remain in the running, which would disqualify India's Tata Motors Ltd., who was also active in the auction. Indian conglomerate Mahindra & Mahindra Ltd., which has automotive operations, may still be in the running though.
The sale was expected to fetch roughly $100 million, but with GM on the financial ropes, bidders have the opportunity to play hardball over price. Additionally, any buyer takes a chance that demand for the gas-guzzling trucks will continue to dry up in the face of plummeting automotive sales in the U.S. and abroad. Still, the desire for oversized vehicles such as the Hummer remains strong in places like Russia and other developing markets. -
George White See Reuters storySee Pipeline story on HummerSee Auction Block data on Hummer sale
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