BREAKING NEWS FROM CNBC’S KAYLA TAUSCHE: RBC, ALLY NEAR DEAL FOR ALLY’S CANADA OPERATIONS
WHEN: TODAY, MONDAY, OCTOBER 22ND
WHERE: CNBC'S "SQUAWK ON THE STREET"
Following is the unofficial transcript of breaking news from CNBC's Kayla Tausche.
All references must be sourced to CNBC.
KAYLA TAUSCHE: ALLY FINANCIAL IS NEAR A DEAL TO SELL ITS CANADIAN OPERATIONS TO ROYAL BANK OF CANADA FOR MORE THAN $4 BILLION ACCORDING TO PEOPLE FAMILIAR WITH THE MATTER. I AM TOLD AN ANNOUNCEMENT ON THE DEAL COULD COME AS SOON AS TODAY BUT RBC HAS BEEN BIDDING AGAINST TORONTO DOMINION OR TD BANK WHICH IS STILL IN THE AUCTION PROCESS THOUGH UNCLEAR WHETHER TD WILL COME IN WITH A TOPPING BID. NOW ALLY THE FORMER FINANCING ARM OF GM HAS $15.3 BILLION IN ASSETS IN CANADA THOUGH ITS NET INCOME THERE HAS BEEN DETERIORATING BUT ALLY WILL USE THE PROCEEDS FROM CANADA LUMPED TOGETHER WITH $865 MILLION FROM THE SALE OF ITS MEXICAN INSURANCE BUSINESS LAST WEEK AND THE FORTHCOMING SALES OF THE BUSINESS IN EUROPE AND LATIN AMERICA TO CONTINUE BUYING BACK THE TREASURY DEPARTMENT'S 74% STAKE IN THE COMPANY. ALLY ANNOUNCED IN MAY THAT IT WOULD SELL THOSE INTERNATIONAL BUSINESSES AS PART OF THAT EFFORT. RBC AND ALLY COULD NOT BE REACHED FOR IMMEDIATE COMMENT I AM TOLD TALKS REMAIN FLUID AND THE SITUATION COULD CHANGE BUT WHERE WE STAND RIGHT NOW RBC NEAR A $4 BILLION DEAL FOR ALLY CANADA.
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