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WORLD> America
General Motors in tentative deal to sell Hummer
(Agencies)
Updated: 2009-06-02 20:49

General Motors in tentative deal to sell Hummer
A Hummer display is shown in the showroom at the Williamson Cadillac dealership Monday, June 1, 2009 in Miami. [Agencies] 
In advance of Monday's bankruptcy filing by GM, the automaker had agreed on a deal to sell a majority interest in its Adam Opel GmbH unit in Europe.

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Under that plan, Canada's Magna International Inc. would get a 20 percent stake in Opel and state-controlled Russian lender Sberbank would take a 35 percent stake. GM will retain a 35 percent holding, while the remaining 10 percent will go to Opel employees.

The proposed deal for Hummer will allow it to continue to contract vehicle manufacturing and business services from GM during the transition process.

The Hummer sale is expected to close by the third quarter's end.

GM sought court protection from its creditors on Monday under Chapter 11 of the US bankruptcy code. The company said it hopes to reshape the company within a month and emerge from reorganization in 60 to 90 days as a profitable entity with fewer employees, factories and dealers.