• Aug 6, 2010
At this point, the only thing we know for sure about the General Motors initial public offering is that it will happen... eventually. With the United States government holding a 61-percent equity stake in the automaker, the political pressure is huge to make a stock sale occur sooner rather than later.

However, until GM CEO Ed Whitacre spoke at the Management Briefing Seminars in Traverse City, MI this week, the presumption was that only about one-third of the company's stock would be offered up in the IPO. Whitacre, however, seems to be indicating that the entire company would be offered up in a single sale. The rationale for doing the stock sale in stages would be to maximize the return on the government's investment. A single sale might result in a lower per-share price and lower overall return. By selling a smaller stake and then timing further sales with a hopefully rising stock price, the return could be improved.

Following Whitacre's comments, other GM representatives told CNBC that the final decision would be made by the current shareholders, the U.S. and Canadian governments, the UAW health care trust and former bondholders.

[Source: CNBC]


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  • 21 Comments
      • 4 Years Ago
      I hope the Chinese won't buy a large amount of shares in GM.
        • 4 Years Ago
        clipsinite you forgot to mention how unions protect old workers that aren't as productive as one that is younger and can produce twice as much product in twice the quality. The goal of the union in todays market is to get as much as they can that they think they deserve and not look at what the rest of the world is dealing with. I worked for a union shop for 8 years..paid my union dues and one day I left work without a job when the guy in front of me missed the most amount of days allowed...did shotty work and had a bad attitude got to keep it and instead of being happy complained about having to work. The unions also protect the workers that try to get away with everything they can because they have the protective baby sitter to run to when they get caught messing up. I work for a non union place and I like it..if you dont do your job you are fired...it's called survival of the fittest and if you don't like it then maybe you are the ones needing the unions.
        • 4 Years Ago
        Avinash machado:
        I believe your fears are well founded. Unfortunatley, I suspect that the Chinese will be amoung the most active buyers. Selling GM now and in one big chunk will likely make it easier for a Chinese buyer to buying controlling interested in GM all at once, and for a pretty low price.

        The Chinese firm SAIC already own controling interests in GM-China and GM-India.
        http://www.autoblog.com/2009/12/04/report-gm-selling-control-of-chinese-joint-venture-to-saic-hal/ They would be a likely candiate to try to buy a large portion of GM.

        If you've follow the automotive acquisition market, with the exception of Jaguar-Land Rover, almost all of the recent purchases have been by the Chinese, including Volvo, Nexteeer, MG, and Detroit Electric.
      • 4 Years Ago
      canada owns it partially...hehehe
      how the mighty has fallen
      • 4 Years Ago
      There is no point for regular people to buy the stock. Same people and philosophies that drove the company into bankruptcy are still there. Let the institutional investors do the buying and selling for you.
      • 4 Years Ago
      Um..... what? Is that some really bad joke about Canada's ties to England? Or are you just clueless?
      • 4 Years Ago
      But the teabaggers won't be able to call it government motors anymore.
      If they don't have enough to complain about they may have to do something useful with themselves.
        • 4 Years Ago
        If the Republicans had been office there would be no GM or Chrysler, and this would have made Toyota(and a few southern political hacks) happy ....... What Bush started and Obama finished was one of the best decisions this government has made since Social Security. Those of you that sneer and disparage this decision, knowing it's success, are simply showing your ignorance. It is only a matter of time before GM is again the largest automobile company in the world, "An American Company. Deal with it fanboys.
        • 4 Years Ago
        Of course they will. The facts will never get in the way off a misspelled sign. I think the new logic will go something like this:

        Although GM is not directly owned by the government anymore it is traded on the stock market. The stock market is about to be brought to its knees by the government's new regulations. Therefore the government is still trying to control GM so we can still call it Government Motors. Easy.
        • 4 Years Ago
        Blown Tranny: see? your point is proven.. lol
        • 4 Years Ago
        It's not "Government Motors," it's pronounced, "Gub'ment Motors."
      • 4 Years Ago
      As long as we get our 50B back I'll be happy.
      • 4 Years Ago
      So the timing on this decision is being made on what's politically expedient for the Democrats and UAW then? What a great way to run a company! The sooner the government gets out of the picture, the better.
      • 4 Years Ago
      I see them holding off until about October. Before Nov. 2, but not too far before. Though I hope I am being over cynical.
      • 4 Years Ago
      Not bad if they're gonna doing some splits, but you have to have steady growth for that to happen. This could also make it easier for a smaller group to get majority control of the company. Somebody could mastermind a slick takeover.
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