GM plans to file as early as next week, a detailed statement which will outline its proposed initial public offering. The statement will also announce that Morgan Stanley and JPMorgan Chase will be lead underwriters for the sale of part of the government’s stock in the company. The sale of the governments share could come before the next election.
“General Motors is going to have an IPO,” White House chief of staff Rahm Emanuel told ABC in an interview this week. “We’re righting an industry that was not doing itself, or the American people or its workers, the right thing.”
The initial selling price will provide an early snapshot of how much taxpayers can be expected to recoup from the bailout. treasury Secretary Timothy Geithner said Tuesday that the government’s projected loss on the auto industry bailout continues to narrow.
Once GM files the statement, they must get approval from the SEC before the initial offering. Though it is unsure how much of its stake the government will divest, it is by and large agreed that the GM IPO will be one of if not the largest IPO in history.
– By: Stephen Calogera
Source: Detroit News