General Motors Company CEO Fritz Henderson has repeatedly said that the Detroit automaker is aiming for an initial public offering as early as next year. However, the Government Accountability Office (GAO) said Monday that 2010 might be too soon to execute such a stock offering.
The GAO said that the Obama administration should establish a more detailed guideline for how it plans to sell its stake in GM and Chrysler and may consider more options such as private sales.
“Two of the experts we spoke with said GM might not be ready for a successful IPO by 2010, because it may be too early for the company to have demonstrated sufficient progress to attract investor interest, and two other experts noted that 2010 would be the earliest possible time for an IPO,” the GAO said.
GAO said that it may be too early to tell whether there has been significant structural changes at GM and Chrysler due to low sales and the economic environment.
General Motors has said that the final say in launching an IPO rests with the company’s owners, including the U.S. government.
– By: Stephen Calogera
Source: Free Press