• Jul 5, 2010
General Motors – or perhaps it was all those sources 'in the know' – had their drums beating about a possible IPO filing as early as last week. Here we are a week later and there's still no firm sign of a stock offering. Reuters, quoting a "source familiar with the situation," now reports that the filing has been pushed back to August due to some financial loose ends that GM would like to address before setting its shares free.

The biggest loose end appears to be CEO Ed Whitacre's desire for a $5 billion line of credit. Four banks have pledged $2 billion so far, with the balance expected to be wrapped up in a fortnight. The funds could pay for expansion plans and, more importantly, serve as a buffer in case the recession does the double-dip that's being increasingly discussed in economic circles. The Reuters report didn't mention anything about Whitacre's stated aim of restarting a captive finance arm before an IPO.

A $15 to $20 billion offering is still the range being quoted for GM's IPO. It is speculated that GM is so committed to getting things done this year that the company will lower the valuation rather than postpone the proceedings. There are still so many what-ifs and concerned parties involved, however, that it's looking more and more likely that we won't know how well GM's IPO will really do until we know how it actually did.

[Source: Reuters]



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  • 26 Comments
      • 4 Years Ago
      Just increases my desire to replace my current GM product with another GM product. And so I will do as of Q1.
      • 4 Years Ago
      I get the desire to get the government out of the way, but rushing an IPO knowing that will lead to a lower valuation is dumb and rather tangible proof the people at the top are still the moron GM mindset that caused them to die.

      It would be best to get the fall models released and IPO at the beginning of Q2 next year, barring economic downturns then, of course. Could even make it just after the NAIAS if there are offerings that would excite the buying (and investing) public.

      But there is probably nothing that will stop this IPO from happening too soon.
      • 4 Years Ago
      "Report: GM pushes IPO filing back to August due to financial issues"

      You mean like impending bankruptcy? (again)
        • 4 Years Ago
        Are you really that stupid?
        • 4 Years Ago
        To the geezer known as Caddy-V

        ...since you're stupid enough to:

        1) Respond to these statements like the reactionary attack dog (not unlike the mindless talking heads shown on the idiot box known as the T.V.)
        AND
        2) Become an apologist for GM (which stands for Government Motors as long as the Government has a substantial stake in GM)

        That makes you twice as stupid in my book, son...

        People like you are so damn predictable it isn't even funny....
      • 4 Years Ago
      Only a sucker would buy GM stock if they ever get around to an IPO. ALL the last GM stockholders got a big galvanized screw up their A$$es after the government bailout and were left holding worthless pieces of paper they use to call stock.
      • 4 Years Ago
      I can see the headlines now:

      Government Motors is broke. But their executives managed to escape with their platinum parachutes...
        • 4 Years Ago
        Time to take your meds, caddy-V. You obviously have some anger management issues...

        Hey, I understand the anger at the fact that you have a substantial investment in a GM product (and probably overpaid for it), that you have to lash out at others in order to anesthetize yourself from the pain of that realization.

        Your self-worth, image and ego notwithstanding, the reality remains that as long as there remains the vestiges of the old GM management and corporate culture (short-sighted vision) in the "new" GM, the same mistakes will be made, and GM will more than likely revisit the bankruptcy situation again.

        Class dismissed..
        • 4 Years Ago
        Question answered. Yes, you are.
      • 4 Years Ago
      Maybe they should wait till next year.
        • 4 Years Ago
        They can't. The Republicans want to use them as a chew toy.
      • 4 Years Ago
      It would be wonderful to see all the companies go out of business because of th recession caused by the banks, kill a whole ton of jobs and cause massive pandemonium. I would wonder what would the anti-bailout, anti-government, anti-GM, anti-Chrysler, anti-American brand people would be saying? Who would they find to blame? How would they feel that this country no longer has an industry and to get everything we must turn to Asian or Europe? Very glad we won't get to know but I know the nay sayers wouldn't be screaming about tax payer bailout, but screaming more about how am going to pay for this house this car and put food on my table for my family.
      • 4 Years Ago
      I explained my frustrations very rationally in one short sentence. I could easily write a 20 page paper filled with "precise financial terms" to tickle your fancy but I simply do not have the time. So stop drinking the kool-aid and wake up.
      • 4 Years Ago
      The early IPO pressure comes from both the Government and Whitacre's management team.The Government would like some tangible return from all of those Billions (political reasons as well as economic) and the top tier management guys would like some stock options that pay real money.There is no doubt that the IPO will be launched as soon as possible with the company's overall best interest (greatest value) being only a secondary consideration.
      • 4 Years Ago
      GM is having financial issues....I would have never expected this from them. Can our government please let them go bankrupt and do us all a favor, and while your at it take Chrylser with you too!
        • 4 Years Ago
        I have family members, friends, and neighbours that would all be out of a job if GM and Chrysler were to go bankrupt. Can you please explain to me, -in precise financial terms-, how their bankrupties would be doing "us all" a favour? Set aside your frustrations for a minute and walk me through the numbers.
      • 4 Years Ago
      Push it back even farther. The market is absolute crap right now.

      No reason to rush an IPO just because a bunch of short-sighted idiots are pressuring them to. 2 months or 6 months doesn't matter, but if it means the differences between 15 and 20 Billion that is a huge difference.
        • 4 Years Ago
        +1

        For this IPO to happen right now Politics and Greed will have to overcome common sense. All of the current indicators are pointing to a double dip recession and car sales are already feeling it. But the fat cats at the top of GM want government limits on pay out of the way. Total greed. These are not the people responsible for the product revival taking place at GM or the cost cuts that saved the company. They are just there to grab the glory and the bonus.

        The political folks on the other hand want the appearance of being out of the car business. They will even try to fool us into believing that they made a profit off of this whole debacle. The reality is the money used to bailout this company was borrowed but nobody is accounting for the interest on it or the damage adding all that debt is doing to our Governments' abilties to service it's debt. Take a quick look a Greece and you will see what happens to governments that think it is okay to keep spending money they don't have.

        BTW don't even think of replying to say this is any one government, political party or leader's fault. Leaders on all sides of the aisle in both Canada and the US put their support behind this whole fiasco. Just because the media has a short memory doesn't mean we should fall for it. Partisan politics is just another way to divide and conquer the Sheeple.
        • 4 Years Ago
        I'm with you and superx below. The market is really bad at the moment, pushing it back is the prudent thing to do. Having to set a low price would mean less revenue and that's not good. Also having the price dip or even flatten after the IPO because of a soft market overall is not great either.
      • 4 Years Ago
      According to those in the know, the $5B credit line, is to prop up the money pit known as Opel.

      They would rather use "other peoples money," than their own.

      Pressure for an IPO this year, would be for political reasons only. Also, from those in the know, avoid getting in for the first couple of years, ad the govt will be artificially propping up the value, to get get more return. After they divest, the stock will dive.
        • 4 Years Ago
        The Federal Gov't is requiring an immediate IPO in an effort to win votes for the democrats this fall. It is as simple as that.

        A GM IPO this summer is too ridiculous to even contemplate. GM doesn't even have GAAP financial documents available. One "unaudited" quarter of profit? Please! Gov't supported big banks will be forced to go along with this to make it look good. Socialism at it's worst.

        GM is at least a year away from a legit IPO and most of America fully realizes this fact.
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