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US takes shares in GMAC

The US government will get five million preferred shares from GMAC in exchange for injecting $5bn of capital into the troubled financial arm of General Motors.

GM has a 49% stake in GMAC, with the remaining 51% held by Cerberus, Chrysler's parent.

The US Treasury will get 8% interest on the shares. It also excercised a 10-year warranty to buy 250,000 more GMAC preferred shares for a penny each, reports AP.

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