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GM Reveals Details Of Its Long-Awaited IPO – And $2 Bil Q3 Profit

Initial public offering expected to raise $13 billion – but could lose billions to U.S. Treasury.

by on Nov.03, 2010

It's official. GM will seek $26 to $29 per share for its IPO -- and the U.S. Treasury could lose billions, at least initially.

Eager to shed the derisive “Government Motors” tag, General Motors today announced the details of a long-anticipated initial public offering of stock that is expected to raise $13 billion for the company – and help pay off a chunk of the $50 billion federal bailout that pulled the maker out of bankruptcy last year.

GM said Wednesday it had filed the documents with the Securities and Exchange Commission, indicating “certain shareholders,” including the principal shareholders, the U.S. Treasury, the Voluntary Employee Benefit Association established in 2007 in cooperation with the United Auto Workers Union to finance retiree health care, and the Canadian government, will sell a total of 365 million shares.

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Underwriters estimate the shares will sell for between $26 and $29 per share.

Notably absent from a GM announcement was the date of the planned stock offering, but well-informed sources are indicating it will be staged on November 18.