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]