General Motors Co, the largest US automaker, is in early stages of talks with banks about expanding its credit line by as much as US$5 billion, a person familiar with the discussions said.
GM, based in Detroit, may seek US$4 billion to US$5 billion in additional revolving credit from some of the lenders that provided its current line of credit, said the person. GM declined to comment.
The automaker has “substantial cash requirements going forward,” including pension obligations and reinvesting in operations, according to an Aug. 3 regulatory filing. GM had US$32.6 billion in cash and marketable securities on hand on June 30. It also has a US$5 billion revolving credit line that was set up in October 2010, according to the filing.
“While we do not believe that we will draw on the secured revolving credit facility to fund operating activities, the facility provides additional liquidity and financing flexibility,” GM said in the filing.
The company was revamped in a government-backed bankruptcy in 2009.
Last year GM took back the title of the world’s top seller of cars and light trucks from Toyota Motor Corp.
Chief executive officer Dan Akerson faces a slide in GM’s share of its home market to 18 percent through last month from 20 percent a year earlier.
Akerson also wants to end losses in Europe that have totaled US$16.8 billion since 1999.
The negotiations about the new credit were reported on Friday by the Wall Street Journal, which cited people with knowledge of the discussions it did not identify. The Journal also said GM had not made an official request to banks.
Also on Friday, GM’s issuer default rating was raised by Fitch Ratings to “BB+,” the highest non-investment level, from “BB.”
The change reflects GM’s “continued positive free cash flow generating capability” and “very low leverage,” Fitch said in a statement.
GM slipped 0.7 percent to US$21.18 yesterday at the close in New York.
The automaker has slid 36 percent since its November 2010 initial public offering. The US government still holds a 32 percent stake in the company.
Softbank Group Corp plans to keep a stake in the chip designer Arm Ltd, even if it sells a partial interest to Nvidia Corp, the Nikkei reported. The companies are negotiating terms, the newspaper reported, citing sources. Softbank might take a stake in Nvidia after it buys Arm, the report said. Nvidia and Arm might also merge through a share swap, and Softbank would become a major shareholder in the combined company, it said. The two parties aim to reach a deal in the next few weeks, the sources said, asking not to be identified because the information is private. Nvidia is the
END TO SPECULATION: The hotel’s management contract has been extended, despite reports that it wanted to end its alliance with Hyatt Hotels over a deal with Riant Capital Singapore-based Hong Leong Hotel Development Ltd (豐隆大飯店股份) yesterday said it has extended a management contract to ensure the continued presence of the Grand Hyatt brand in Taipei, ending rumors that the two sides were parting ways. “We are pleased Hyatt is able to come to terms on the extension of the management contract of Grand Hyatt Taipei,” said Kwek Leng Beng (郭令明), executive chairman of City Developments Ltd (城市發展) and Millennium & Copthorne Hotels Ltd (千禧國敦酒店). Hong Leong Hotel Development is a subsidiary of Millennium, and both fall under the Hong Leong Group (豐隆集團). The Grand Hyatt Taipei (台北君悅大飯店), owned and built by
Gold surged to a fresh record on Friday, fueled by US dollar weakness and low interest rates, while silver headed for its best month since 1979. Spot bullion is up more than 10 percent this month, as US real yields lingered near record lows. While the ferocity of rallies in gold and silver cooled in the middle of the week, most market watchers predict there might be more gains ahead. Both metals have added about 30 percent this year, with gold and silver exchange-traded funds boosting holdings to a record, as concern about the fallout from the COVID-19 pandemic fuels demand for
MOVING FROM CHINA? The article did not name the company, but Foxconn, Wistron and Pegatron were among firms chosen for a production-linked incentive plan in India An Apple Inc vendor is looking at shifting six production lines to India from China, which could result in US$5 billion of iPhone exports from the South Asian nation, the Times of India reported, citing people familiar with the matter who it did not identify. The establishment of the facility would create about 55,000 jobs over about a year, the newspaper reported, not naming the Apple vendor. It would also cater to the domestic market and expand operations to include tablets and laptops, the newspaper reported. Samsung Electronics Co and Apple’s assembly partners are among 22 companies that have pledged 110 billion