According to Neil Barofsky, the treasury department's inspector general, in order for the U.S. government to break even on its investment in General Motors
, the company's stock will have to hit at least $133.78 a share. Thanks to the massive auto industry bailout, the government currently holds a total of 304 million shares of common stock and $2.1 billion in preferred stock in the automaker. According to The Detroit News
, Barofsky has said that he will keep a close eye on the GM
IPO in order to get the best return on the tax payer's investment possible.
But will GM stock hit the magic number? Some analysts seem to think so. There's some buzz that when GM goes public, its stock will be worth well over $100 per share. The company has already begun to make noise indicating that soon after the November 2 elections, it will begin a campaign to build interest in its IPO, so anything's possible.
[Source: The Detroit News
| Image: AP/Al Goldis/Getty]