U.S. willing to keep talking to GM bondholders

WASHINGTON (Reuters) - The U.S. government feels that General Motors Corp bondholders who are balking at a debt-for-equity swap have gotten a fair offer but is willing to keep trying to persuade them to join, sources familiar with the discussions said on Tuesday.

"We're going to do everything we can ... to have peace in the valley and a happy outcome," one of the sources said, indicating a willingness to keep talking with bondholders after a midnight deadline for the swap.

(Reporting by Glenn Somerville and David Lawder,Editing by Dan Grebler)