GM will look to sell just over $10 billion worth of common stock, report says
By Andrew, 04 Nov, 2010. 0 Comments
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Sources told Reuters that General Motors expects to sell a little over $10 billion worth of common stock and $3 billion of preferred stock in an initial public offering that is aimed to shift the US government to a minority shareholder. These sources added that GM expects to sell 365 million common shares for $26 to $29 each. The terms are set to be revealed in an updated prospectus with the US Securities and Exchange Commission this week.
It’s likely that GM, which came out from bankruptcy in July 2009 with the US Treasury as its majority shareholder, will sell a combined $1.5 billion to $2 billion stake to four or five sovereign wealth funds. One source said that the IPO will enable the US Treasury to cut its nearly 61% stake in the automaker to 43.3%, excluding the overallotment option.
The source said further that the governments of Canada and Ontario are expected to sell down their stake to 9.6% from 11.7%. Meanwhile, it’s anticipated that the UAW retiree health care, or VEBA, trust will sell down its stake to 15% from 17.5%. [via reuters]
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