SAIC might invest in GM’s initial public offering (IPO)
By Andrew, 18 Oct, 2010. 0 Comments
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When asked about the possibility of investing in General Motors Co's initial public offering, SAIC Motor Corp. chairman Hu Maoyuan said that it has yet to make a decision but it does not rule it out. At a conference in Shanghai, Hu told reporters that the company will be examining its options. He only had praises for GM, saying that the restructuring was “very good” for the company and that it is “moving to a healthy direction of development.”
Last September, a Reuters report cited sources revealing that SAIC had approached GM to discuss the prospect of taking a stake – not surprising as the two companies have a 13-year old relationship.
Huatai Securities analyst Chen Liang, said, “Many expect SAIC to take a stake in GM when it goes public again.” Referring to Shanghai GM, GM's flagship car venture with SAIC, he said that an equity tie “will bring the partnership to the next level” and that in this joint venture, GM could possibly increase its technology input. [via autonews - sub. required]
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