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Funds News

Platinum Equity eyes GM's Hummer unit - report

NEW YORK, Feb 12 (Reuters) - Platinum Equity LLC, a U.S. private equity firm that buys distressed assets, is among the potential buyers of General Motors Corp's GM.N Hummer sport utility vehicle unit, Bloomberg News said on Thursday, citing people familiar with the matter.

Platinum, run by Flint, Michigan native Tom Gores, is vying with a Chinese company, the report said, citing the people.

In September, Beverly Hills, California-based Platinum said it raised $2.75 billion for a new leveraged buyout fund.

“We’re not commenting on bidders,” GM spokeswoman Joanne Krell said.

The automaker sent a sales prospectus out to potential bidders in October, and has said it will update investors on the sale process before the end of March.

Platinum did not immediately return a call seeking comment.

GM is pushing to secure big concessions from its bondholders and major unions to show it can survive with a $13.4 billion U.S. government bailout.

The automaker has until Tuesday to submit a new restructuring plan to the U.S. government, showing its progress in cutting costs and shoring up its balance sheet. (Reporting by Kevin Krolicki and Jonathan Stempel; Editing by Bernard Orr)

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