General Motors asks IPO banks to take cars instead of fees
With the GM sale being potentially huge and IPOs still relatively scarce during the economic downturn, the automaker feels it has some leverage with the banks. As a result, it's asking the money-changers to be creative about how they'll market the sale and be compensated. One potential option is for banks to use some of the fees to purchase GM vehicles or subsidize purchases by employees. This will both lower the cost to GM and the U.S. Treasury, while improving GM's revenues. One particular benefit would be getting wealthy bankers to take a serious look at GM vehicles, possibly helping the automaker get a better demographic. Or something...
[Source: Bloomberg Businessweek]
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