U.S. Treasury concerned about the number of foreign investors in GM IPO
By Andrew, 05 Sep, 2010. 0 Comments
GM Renaissance Center
The Wall Street Journal said that the US Treasury is apprehensive about the number of foreign investors it should permit to purchase big stakes in General Motors Co.'s proposed initial public offering. The paper cited sources in saying that the Treasury is wary because it is hoping to play down any political fallout from the IPO. These sources added that the Treasury may choose which of its non-US investors, such as sovereign wealth funds, should be given an invitation to be "cornerstone" investors. These cornerstone investors are chosen to commit to purchasing and holding a large stake at a set share price as a show of confidence meant to attract other investors. General Motors made huge strides to repay a controversial taxpayer-funded bailout by announcing plans for a landmark stock offering that stands for a critical test for the Obama administration. Presently, the US government owns nearly 61% of GM after converting $43 billion of the $50 billion in funding into equity. [via Wall Street Journal]
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