Blackstone is among the private equity suitors in pursuit of General Motors’ Allison Transmissions unit, as interest heats up in GM, reports Reuters. Centerbridge Capital Partners and Carlyle Group are among other buyout firms said to be interested in the division, according to Reuters. Sources said Allison’s cash flow was more than $500m and its price tag could be about $3bn. GM said in January it was looking at strategic options for the Indianapolis-based division, which makes transmissions and hybrid propulsion systems for commercial trucks, buses and military vehicles. GM, meanwhile, saw first quarter profits plunge 90 per cent, with improved automotive operating profits more than offset by heavy subprime mortgage losses at GMAC, the financial services group in which the carmaker has a 49 per cent stake, reports the FT. Still, GM is not lightly relinquishing its crown to Toyota as the world’s biggest carmaker, judging by a subtle tweak to its press release claiming itself the “annual global industry sales leader”, notes the FT’s Observer column.
