GM must decide soon on a lead bank to sell shares publicly

Article by Christian Andrei, on August 27, 2010

As early as this week, General Motors Co. and the US Treasury are expected to already have chosen a lead bank for the carmaker's initial public offering, according to insider sources.

The report claims that GM, which is majority-owned by the US government, would have to decide soon on an underwriter so that it can sell shares publicly by the fourth quarter.

The sources say that the Treasury, which partially funded the carmaker's restructuring last year, is likely to have a bigger influence than the company in the selection. Previously, GM CEO Ed Whitacre has stated that the carmaker may go public this year.

Joe Phillippi, president of AutoTrends Consulting in Short Hills, New Jersey, said that GM would have to start soon to sell stock before the Nov. 2 congressional elections.

Phillippi added that because this "isn't some little tech company," then it's bound to be a global road show. GM spokesman Randy Arickx said that he doesn't know of any upcoming decision.

Likewise, the Treasury Department has neither confirmed nor denied this report. A source said that earlier this month, GM and Treasury officials had a meeting in Washington with senior executives from Goldman Sachs Group Inc., Bank of America Corp., Citigroup Inc., JPMorgan Chase & Co. and Morgan Stanley about hiring a lead underwriter. [via autonews]

Topics: gm, ipo, shares

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

Retired Formula 1 driver Jenson Button has just received his brand new McLaren MSO 675LT Spider. This was confirmed after McLaren Beverly Hills posted a picture on its official Instagram...
by - January 24, 2017
Ford and Toyota have come together in the hopes of standardizing their vehicles’ smartphone integration system. The open-source platform is said to compete with Google Android Auto and Apple CarPlay...
by - January 24, 2017
The race to autonomous driving has been dictated by the need to make the road safer and reduce the incidents of vehicle crashes. Several major carmakers in the world have...
by - January 24, 2017
The Shooting Brake is probably the least rendered body shape in the automotive world. But it’s also the most sought after design among car nuts for its unique, old-fashioned charm....
by - January 23, 2017
Perhaps to make the upcoming Valentine’s day more special, Tinder dating app and Ford UK have cooked up a special blind date for all the single blokes and chicks in...
by - January 23, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries