GMAC targets Northern Rock; sale of ResCap parts

By Mark McSherry

NEW YORK (Reuters) - U.S. finance company GMAC said on Wednesday it is exploring the sale of parts of its troubled mortgage-lending arm, Residential Capital LLC, and the purchase of a non-U.S. mortgage lender, which sources said was the UK's Northern Rock Plc NRK.L.

GMAC said in a statement it submitted an indication of interest to buy a "large non-U.S. mortgage lending institution," but did not identify the target.

Sources told Reuters that Northern Rock, a distressed British bank, is the institution that GMAC would like to buy.

GMAC is 51 percent owned by a consortium led by private equity firm Cerberus Capital Management CBS.UL. On Tuesday, another source told Reuters Cerberus has submitted a bid for Northern Rock.

GMAC, 49 percent owned by General Motors Corp (GM.N: Quote, Profile, Research, Stock Buzz), would not elaborate on its statement. Cerberus declined to comment.

GMAC said its goal would be to combine the local mortgage business of Residential Capital (ResCap) with the acquired institution if GMAC was successful in doing a deal.

Other interested parties are pursuing the same acquisition, GMAC said, and there can be no assurance it will succeed.

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