China’s SAIC interesting in buying a single-digit share of GM’s IPO

SAIC, China”s leading automaker has expressed interest in buying a stake in GM once the company goes public, said a source close to the situation. The company, which is funded by the Chinese government, has a number of joint-ventures already in place with GM. How far they proceed in acquiring a stake in GM depends in large part on the U.S. Treasury, and its divestment of ownership in the company.

Despite the long-running relationship between the two automakers which has yielded wild success and remains crucial to GM”s position in the world”s leading emerging market, the ownership in whole or in part by a company which is funded by the communist government of China is bound to cause a few political rifts in the U.S.

According to Bloomberg, SAIC would be seeking a single-digit stake in the company. The Treasury said late last week that although investors in the IPO could come from anywhere, there will be a decided focus on North American investors.

-By: Stephen Calogera

Source: Free Press