GM Files in First Step Toward Public Offering
August 18, 2010
(HMG) – A year after the Obama administration did a $50 billion bail out of bankrupt General Motors during the financial crisis, the auto giant believes it’s ready to rise again. GM’s has filed an initial public offering on Wednesday, in a step toward once again being a public company. The shares will likely be traded on the New York Stock Exchange and Toronto Stock Exchange between late October and Thanksgiving, giving the Democrats time to paint the controversial auto bailout as a success before the midterm elections. The move is the first step in repaying taxpayers for the government bailout, and could raise as much as $20 billion in its IPO, eventually making the U.S. Treasury a minority shareholder. The IPO deal itself may not be completed for two or three months, with J.P. Morgan Chase, Morgan Stanley and other investment banks underwriting the offering. Because this is such a huge potential offering, it’s possible that Charles Schwab and other discount brokers could have some shares to allocate to their bigger account-holders. If you owned shares in the old GM, you apparently do not get any special break to buy new shares.