General Motors gets $5.6 billion for Allison Transmission; shares trade at 2-year high

Thursday, June 28, 2007
General Motors gets $5.6 billion for Allison Transmission; shares trade at 2-year high
The Detroit News





General Motors Corp. today said it will sell its Allison Transmission unit for $5.6 billion.

The news drove the auto maker's shares two a two-year high, with investors betting the influx of cash will help GM's bargaining position as it enters this summer's contract negotiations with the United Auto Workers.

Shares of GM closed at $38.15, the highest price since January 2005.

The sale, to The Caryle Group and Onex Corp., includes seven plants in Indiana and Allison's global sales network. Allison employs 3,400 workers worldwide.

GM said it will keep a truck and SUV transmission plant in Baltimore, however.

Carlyle is a private equity firm; Onex is a publicly traded Canadian corporation with a private-equity unit.

GM said in a statement that the deal could close by the third quarter of 2007.














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