In March, General Motors said it was considering selling all or substantially all of its interests in GMAC Commercial Holdings, the commercial mortgage business of GMAC. The company cited what a spokesman said at that time was "difficult capital market environments.''
Reports later surfaced in October that Deutsche Bank AG had reached a tentative agreement to buy GMAC Commercial Holding for approximately $1 billion.
On Tuesday however, GMAC issued a statement that it was no longer interested in sellings its Commercial Holdings business.
On Monday, an agreement was reached that calls for the Port Authority of New York and New Jersey to spend $563 million to buy out GMAC Commercial Mortgage Corporation, which was Silverstein Properties' lender in the company's 2001 winning bid for control of the trade center.
GMAC did not mention the New York deal in its Tuesday statement and issued no further comment on Wednesday. Deutsche Bank also had no comment.
GMAC is a key part of General Motors' portfolio, financing deals on the purchase and lease of vehicles sold by GM dealers and also operating a residential mortgage business, among other activities. It has been a consistent money maker for the automaker, even during times when the auto industry was soft.
GMAC said this year has been a record-breaking year for its commercial division, conducting more business in the first three quarters of 2003 than in all of 2002. The commercial mortgage unit had net income for the nine months ended Sept. 30 of approximately $243 million, generating nearly $20 billion in loans. It had total assets of $14.6 billion as of Sept. 30.
GM's stock price climbed more than five percent Wednesday, up $2.26 on the New York Stock Exchange to close at $45.54, but that increase was attributed primarily to expectations about a pending GM announcement on the status of its pension liabilities and strong U.S. auto sales in November.
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