A year ago, General Motors
needed a $50 billion U.S. government bailout to stave off liquidation. One year later, the Detroit-based automaker is on the precipice of filing for one of the largest initial public offerings in American history. Automotive News
quotes unnamed sources who claim GM
will file with the Securities and Exchange Commission by August 16. These anonymous sources reportedly added that the goal is to complete the company's IPO before the November elections - unsurprising when you consider the highly-political nature of The General's current status (the federal government holds a 60.8% stake in the automaker).
Assuming GM files by August 16 as AN's
sources allege, the move would come just days after the company's second-quarter earnings announcement. If that's indeed the case, we think GM plans to announce a sizable profit for the quarter that ended on June 30. After all, there's nothing more unattractive to investors than a fresh batch of red ink on the ledger.
[Source: Automotive News