IPO deadline extended for GM employees, dealers, and retirees
By Andrew, 13 Oct, 2010. 0 Comments
GM Renaissance Center
As part of General Motors Co.’s initial public offering scheduled for November, about 600,000 employees and retirees in the US and Canada are given the chance to buy stock at the IPO price. In a letter dated Sept. 30 to employees and retirees about this directed share program, GM asked employees and retirees to pre-register their interest in the share purchase program online or via mail by October 15. The letter said that the company has yet to determine the maximum or minimum number of shares that an employee or retiree can purchase under the program.
But according to the letter obtained by Automotive News, the minimum investment is greater than $1,000. Furthermore, GM has not yet figured out the initial share price of its IPO. Directed share programs are typically how employees can buy stock in their employers. GM spokesman Pete Ternes would only confirm that the letter was sent; however, he declined to provide details due to the regulations with regards to discussing the upcoming IPO.
According to analysts, this IPO could be one of the largest in recent history, enabling the US government to recover $8 billion - $10 billion of the more than $49.5 billion it spent to keep GM afloat. About 61% of GM is owned by the US government while the Canadian and Ontario governments control 11.7%. An independent health care trust controlled by the UAW owns 17.5% of GM. [via autonews - sub. required]
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