GM plans to sell $13bn of shares
Wednesday 03 November 2010
General Motors is expected to sell just over $13bn of shares in its initial public offering, cutting the US government's stake while opening the door for investment by overseas state-backed investors.
GM was expected to file the terms in an updated prospectus for its IPO with the US Securities and Exchange Commission last night.
The company is set to sell 365 million common shares at between $26 and $29 each, raising between $9.5bn and $10.6bn, and making it one of the largest flotations ever in the US. The manufacturer of classic car marques including Chevrolet, Buick and Cadillac emerged from bankruptcy in 2009 with the US Treasury as its majority shareholder, is also likely to sell a combined $1.5bn to $2bn stake to four or five sovereign wealth funds.
The IPO could value the entire company close to $60bn, below the $67bn needed if US taxpayers are to break even on the equity held by the Treasury. By comparison, Ford has a market capitalisation of about $48bn.
The Treasury, which holds a 60.8 per cent stake in GM as a result of its $50bn bailout, is prepared to take a loss on the initial sale, but hopes to break even over time as the stock appreciates.
- 1 Tamir Rice: 12-year-old boy playing with fake gun dies after being shot by Ohio police
- 2 To help fuel their propaganda machine against the poor, our government has now decided to redefine the word 'welfare'
- 3 Bill Cosby: Isn’t it obvious why his accusers have stayed silent up until now?
- 4 Halle Berry takes ex-boyfriend Gabriel Aubry to court for allegedly trying to make daughter look less African-American
- 5 Isis propaganda image showing 'abuse of Muslim woman by soldiers' is actually taken from Hungarian porn film
Rochester by-election: Ukip gains second MP as Tory defector Mark Reckless holds seat
'Beast of Bolsover' Dennis Skinner takes Ukip MP Mark Reckless to task moments after he is sworn in
Rochester by-election: Labour MP Emily Thornberry resigns after posting white van and England flags tweet
The young are the new poor: Sharp increase in number of under-25s living in poverty, while over-65s are better off than ever
Revealed: How the world gets rich – from privatising British public services
Exclusive: UK approved £7m Israeli arms sales in six months before Gaza conflict
iJobs Money & Business
£Attractive: Citifocus Ltd: High calibre individual with significant product d...
£Negotiable: Citifocus Ltd: Leading global bank seeks experienced credit analy...
£Attractive Package: Citifocus Ltd: High calibre individual with a high degree...
£Attractive: Citifocus Ltd: High calibre individual with superior academics an...