As most of you already know, American manufacturer GM is preparing an initial public offering (IPO), sometime after the fourth quarter of the year. According to source close to the matter talking to Autonews, the IPO would shave 20 percent of the stake held by the US through the Treasury.
The move would mean that the government would become a minority owner (the US now holds 61 percent of GM). Although not yet confirmed, this maneuver will see GM throwing into the market a fifth of the government's 304 million shares.
Last year, GM received $52 billion from the US government to survive the bankruptcy process. Out of that amount, $45.3 billion was converted into equity as the government got 61 percent of the car manufacturer. Canada owns 11.7 percent while the UAW retiree healthcare trust fund holds 17.5 percent.
In addition to selling US' stock, GM might issue new shares and sell the ones owned by Export Development Canada and the UAW retiree healthcare trust fund. The IPO will be handled by JPMorgan Chase & Co. and Morgan Stanley.
“The government wants a successful offering soon so they can say that they took the company through bankruptcy, turned it over to independent management and are taking it public," commented Joe Phillippi, president of AutoTrends Consulting.
According to GM, the most likely date for the company to go public is either late 2010 or early 2011. The company's CFO, Chris Liddell, already stated GM has not yet committed to an IPO timetable.
In April 2010, GM repaid the remaining $5.8 billion to the U.S. Treasury and Export Development Canada.
The move would mean that the government would become a minority owner (the US now holds 61 percent of GM). Although not yet confirmed, this maneuver will see GM throwing into the market a fifth of the government's 304 million shares.
Last year, GM received $52 billion from the US government to survive the bankruptcy process. Out of that amount, $45.3 billion was converted into equity as the government got 61 percent of the car manufacturer. Canada owns 11.7 percent while the UAW retiree healthcare trust fund holds 17.5 percent.
In addition to selling US' stock, GM might issue new shares and sell the ones owned by Export Development Canada and the UAW retiree healthcare trust fund. The IPO will be handled by JPMorgan Chase & Co. and Morgan Stanley.
“The government wants a successful offering soon so they can say that they took the company through bankruptcy, turned it over to independent management and are taking it public," commented Joe Phillippi, president of AutoTrends Consulting.
According to GM, the most likely date for the company to go public is either late 2010 or early 2011. The company's CFO, Chris Liddell, already stated GM has not yet committed to an IPO timetable.
In April 2010, GM repaid the remaining $5.8 billion to the U.S. Treasury and Export Development Canada.