GM and SAIC in final talks for IPO stake buy
By Steph, 12 Nov, 2010. 0 Comments
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As part of its landmark initial public offering, General Motors Co. is finalizing talks to sell equity to its Chinese partner SAIC Motor Corp., according to two insiders. These two people added that GM and SAIC are finalizing how much stake SAIC would buy in GM after talks on SAIC’s goals to move beyond the China market and technology sharing. These people added that any deal between SAIC and GM must be green-lit by the Chinese government and there’s a risk that it could fall apart.
Sources had told Reuters that GM’s executives and bankers are courting investors, including overseas sovereign wealth funds believed to buy almost $2 billion worth of shares. On Wednesday, a source said that GM and its bankers have not decided on a maximum value for investment by sovereign wealth funds.
Experts say that closer links with SAIC would emphasize GM’s leading rank in China, the world’s largest and fastest-growing car market. The likely investment by SAIC into GM would expand a 13-year-old joint venture in China and their newly created relationship in India to a bigger global stage. GM is expected to price its roughly $13 billion IPO on Nov. 17 and is set to start trading on Nov. 18. [via autonews - sub. required]
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