• Oct 18th 2010 at 4:01PM
  • 9
It was only last week when Reuters reported that Ed Whitacre, Jr. told the media that General Motors IPO shares would "likely to be priced between $20 and $25 in the initial public offering by the automaker in November." GM didn't respond immediately, but now, like a judge giving instructions to the jury to disregard a courtroom outburst, The General is essentially saying "ignore everything you just heard."

According to The Detroit News, a GM response filed with the Securities and Exchange Commission refutes everything, saying that the price hasn't been set, the IPO might not happen in November, and the company doesn't know if it "will be successful or whether it will work." GM is in a self-imposed "quiet period" before its IPO "to comply with SEC regulations," which Whitacre's comments blew out of the water. According outside observers, "Any comments beyond what is included in GM's regulatory filings could be construed as breaking SEC rules during the quiet period and could jeopardize the timing of the IPO." Whoopsie.

[Source: The Detroit News]

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    • 1 Second Ago
      • 4 Years Ago
      Were'nt they thinking $50 or $60 a share a few weeks ago?
      • 4 Years Ago
      Why do I get the feeling someone way up high is pushing GM off the cliff hoping they swim, but secretly hoping they sink? This idiocy from the CEO can't foster confidence from those he wishes to be investors. I can see the administration secretly working out a deal with the Chinese to write off billions in American debt for a stake in GM, as GM now sells more cars in China than the USA.
      Please see the CNN/Reuters report on GM Chinese sales in June, if you don't believe.
      • 4 Years Ago
      Not only regarding price, but during a quiet period, shouldn't safe harbour statements also refrain from rhetorically using the stock for bonuses, salary negotiations, etc?

      We keep hearing how this or that person/group is going to get a certain amount stock and yet it doesn't exist. Maybe not explicitly outlawed, it just sounds like bad business practices, IMHO.
      • 4 Years Ago
      I actually read the SEC filing this morning.

      Our use of the words “expect,” “anticipate,” “possible,” “potential,” “target,” “believe,” “commit,” “intend,” “continue,” “may,” “would,” “could,” “should,” “project,” “projected,” “positioned,” “guess” or similar expressions is intended to identify forward-looking statements that represent our current judgment about possible future events.

      That cracked me up.
        • 4 Years Ago
        Why would that crack you up? Every single company filing put out by any company contains those terms-have you never invested any money in stocks?
      • 4 Years Ago
      It's really starting to feel like somebody is pushing the GM IPO to happen earlier than it should.

      With the recent disclosures that they have no idea about their internal financials, and with the continuing questions around the US and the global economy, one would think the IPO would be more effective at a later date.

      Which just points even more strongly to some group existing somewhere that doesn't really care. They just want to cash out/play politics/accelerate getting government restrictions out of executive compensation/name your conspiracy.

      Plus ça change, and all that.
      • 4 Years Ago
      Luckily for GM, the SEC almost never takes any action for quiet period violations. Google mouthed off during theirs and the SEC investigated and took no action.

      Still, it was pretty dumb what Whitacre did.
      • 4 Years Ago
      A GM IPO.

      Get out the popcorn, this should be fun to watch. Drama, pathos, comedy.
      • 4 Years Ago
      Nothing new here. GM executives have a long track record of not knowing what the hell their talking about.