When Cerberus Capital Management L.P.’s proposed purchase of a majority stake in General Motors Acceptance Corporation stalled last July, the culprit wasn’t cold feet, contract issues or any of dozens of other predictable roadblocks. It was Wal-Mart.
- Dealmakers: Private Equity
The omnipresent retailer had filed an application to form an industrial bank, and the Federal Insurance Deposit Corporation responded to the resulting political uproar in the time-tested Washington, D.C., way: It declared a moratorium on all such applications. Unfortunately, the banking license that Wal-Mart wanted was the same one that Cerberus needed in order to own GMAC’s bank. Through a fluke, Cerberus found itself joined at the hip with the controversial discounter — and with its $14 billion GMAC deal in jeopardy.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.
For questions call 1-877-256-2472 or contact us at [email protected]