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Strategies & Market Trends : Graham and Doddsville -- Value Investing In The New Era -- Ignore unavailable to you. Want to Upgrade?

To: porcupine --''''> who wrote (1560)	4/13/1999 10:17:00 PM
From: David C. Burns	Respond to of 1722

Delphi spin off Message 8899799

To: porcupine --''''> who wrote (1560)	4/13/1999 10:27:00 PM
From: porcupine --''''>	Read Replies (1) \| Respond to of 1722

GM: A Stealth Financial Stock --???> Mellon sells GMAC $14 billion servicing portfolio PITTSBURGH, April 1 (Reuters) - Mellon Bank Corp. said on Thursday it agreed to sell a $14 billion commercial mortgage servicing portfolio to GMAC Commercial Mortgage Corp., as it exits the commercial and residential mortgage business. GMAC Commercial Mortgage, an arm of General Motors Corp.'s financing unit GMAC and the largest U.S. servicer of commercial mortgages, would have a servicing portfolio of about $70 billion after this deal. Terms were not disclosed but the deal is expected to close by the end of the second quarter and is not expected to have a material impact on earnings. "GMAC Commercial Mortgage has the necessary scale in this industry to make significant ongoing investments in technology and will work closely with us to ensure a smooth and seamless transition for our clients," Martin McGuinn, the new chairman who has presided over a series of changes at the regional bank, said in statement. Mellon set out plans to sell its commercial and residential mortgage businesses as well as its credit card business and network services transaction processing unit back in January, to focus on higher-growth businesses like asset management and private banking where it holds dominant positions. As part of this process, the bank sold its credit card business, including 800,000 accounts and $1.9 billion in receivables to Citigroup Inc. less than two weeks ago. Late last year, Mellon sold its merchant processing business to Paymentech Inc. . Mellon, which last year rebuffed a friendly merger offer from Bank of New York Co. Inc. still plans to sell its residential mortgage servicing business, which is larger than the commercial portfolio, and the network services business, which supports ATM networks. It expects to complete its planned divestitures by the end of the third quarter. ((Mary Kelleher, N.Y. equities 212-859-1644))