Cerberus considering GMAC buyout

DETROIT, Oct. 11 (UPI) -- Cerberus Capital Management LP is talking to General Motors Corp. about the possibility of acquiring the Detroit automaker's lending division.

A source described as familiar with the negotiations told The Detroit News Saturday Cerberus is exploring a swap in which it would become the sole owner of GMAC and GM would get the automotive operations of Cerberus's Chrysler LLC. Cerberus, a private equity fund, bought a 51-percent stake in GMAC in 2006 for $14.1 billion.

Neither GM nor Cerberus would comment Saturday, the News said.

GMAC posted a $2.5 billion second-quarter loss in August, compared to a $293 million profit in the year-earlier period.