• Oct 6, 2010
General Motors has been busy courting potential investors for the company's upcoming IPO. According to Bloomberg, the manufacturer has met with wealth funds in both the Middle East and Asia in an attempt to feel out global interest in the company's stock. The article says that GM's bankers are planning to meet with three large investment firms, including Saudi Arabia-based Kingdom Holding Company, Abu Dhabi-based Mubadela Development Company and Qatar Holdings LLC as well as Singapore-based Temasek Holdings Pte.
Analysts note that GM's attempt to stir international interest is nothing new. In fact, it's all but necessary if the company wants to raise the projected $10 billion it hopes to generate by going public. Bloomberg says that if the company does manage to hit that magic monetary figure, the feat would be the largest IPO since Visa Inc. raised $19.7 billion in 2008.

The article's unnamed source also indicated that GM is still aiming for a November IPO, though no specific date has been set so far. There's also some indication that the company may delay if it doesn't see enough demand for its stock.

[Source: Bloomberg]


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  • 19 Comments
      • 4 Years Ago
      Look for production of key or entire vehicles to be moved to said sovereign nations. Your next Camaro or Tahoe could be built in Brazil or China.
        • 4 Years Ago
        Negative, GM factories in said countries can't even keep up with local demand.
      • 4 Years Ago
      After what happened to many of the "Old GM" shareholders, they'll need to court every source they can...
      • 4 Years Ago
      I wonder whether GM will end up being foreign owned after all.
        • 4 Years Ago
        It won't be just GM the way this country's being run.
        • 4 Years Ago
        Foreign owned? I'm more worried about national security than anything. Two words "Middle East" and "Asian". Now I have absolutely nothing against anyone in any country, their religion or whatever. BUT Having these exact two geographical regions being involved with the ownership of something like GM and its ability to pump out TANKS and PLANES if ever need be is not comforting.

        It's not racial or theological at all. Here's my concern.

        Asia: Right now the US is at a 20% disadvantage to China in regards to manufacturing because China purposefully devalues their currency (don't ask me how that works). So the Chinese already have an advantage over the US GDP. If you give them one of the largest non-agricultural manufacturing / GDP generating companies in the US they have even more of an advantage. As well, by offering GM during a time of devalued Chinese currency, they basically get a 20% discount on it. Not to mention control of US jobs, economic factors and hell, the list goes on.

        In regards to Middle Eastern Funds: The Middle East right now is by far much richer than the US. Oil will go away in another 30 years or so. They have no GDP other than oil. Actually 90% of their GDP is oil. They control the oil prices, gas prices and so on. Not to mention the anti-American hostility that rampant (as the news says, not me). So is owning the gas and the car giving another country (or its investors which in this case actually run the country) a pseudo Monoply of sort?

        Heck I bet everyone doesn't even know that Fox news is owned largely by a Saudi Prince. How's your facts doing on that news source? I have nothing against Saudi anyone, but WTF is a US News Source owned by the Prince of a hostile territory!

        See where it's going? My thoughts and feelings on this are not racists or anything at all, I could care less where or who someone is. In their purest form they are based on US National Security, Trade Agreements, Monopolies, Influences, Job Control etc etc.

        Phew.... If any ya'll are Asian or Middle Eastern know that I'm not being ill toward ya. I'm just looking out for the best interest of my Country, family, friends, jobs, income etc etc as would you. Heck would a Middle Eastern country allow a Jerusalem fund to buy a top producing company in their country? Not on their lives!

        This is just not good IMO. This is almost as bad as Bush trying to sell US Ports of Call to Middle Eastern oil companies a year after 9/11 happened. It's like WHAT?

        Anyway, I hope my posts is found to be constructive because that was the intention...
      • 4 Years Ago
      Not so happy about this. GM was saved with US money, and yet they want outside $. Not that US investors necessarily give a rat's heiney about other US people.
        • 4 Years Ago
        The US investors got burned when their preferred and common stock was declared worthless, but the common stock held by union was converted into stock in New Government Motors.

      • 4 Years Ago
      given the immediate need for electrification of cars I wonder if placing GM in oil money hands is the best way to go..
      • 4 Years Ago
      Hope the majority of it will still be AmericanCanadian owned.
      • 4 Years Ago
      Clara, you're a real smart one, have a good day
      • 4 Years Ago
      Brilliant. The American and Canadian Taxpayers bailed this "American" company out of bankruptcy, only to make it an attractive proposition for foreign ownership. I don't know how well that should sit with us.
        • 4 Years Ago
        Both of you have a valid point. However, the IPO is supposed to raise $10B, and yet the bailout was a number of times that amount, so your logic doesn't completely apply (in that the taxpayer is only getting a fraction of what is owed).

        Yes, American jobs are protected. And they'll be working for a potentially foreign-owned company. Does this mean the witch-hunt (read: Toyota) will end?

        I'm not disputing what both of you are saying, in fact, I agree. And any way we slice it, it's difficult to say which direction is right and wrong.
        • 4 Years Ago
        Go figure. You folks whine about YOUR tax dollars, company trying to find a way to pay YOU back, and you whine about that too.

        So, The government saved the company and a couple million jobs, you get YOUR money back sooner rather than later. This is what we here in America call a Win/Win.
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