GM could file IPO as soon as Friday - sources

NEW YORK Thu Aug 12, 2010 2:27am IST

The General Motors logo is seen outside its headquarters at the Renaissance Center in Detroit, Michigan in this file photograph taken August 25, 2009. General Motors Co could file paperwork for its initial public offering as soon as Friday, CNBC reported on Wednesday. REUTERS/Jeff Kowalsky/Files/Files

The General Motors logo is seen outside its headquarters at the Renaissance Center in Detroit, Michigan in this file photograph taken August 25, 2009. General Motors Co could file paperwork for its initial public offering as soon as Friday, CNBC reported on Wednesday.

Credit: Reuters/Jeff Kowalsky/Files/Files

Related Topics

NEW YORK (Reuters) - General Motors Co could file a registration for its initial public offering of stock as soon as Friday, a day after it reports quarterly results, three people with knowledge of the process said on Wednesday.

GM's IPO registration was expected as soon as this month, but the company and advisers have sent conflicting signals about how quickly that first step toward reducing the government's majority ownership stake could happen.

The IPO filing was expected in mid-August, but GM Chief Executive Ed Whitacre said last week that the company did not plan to file a registration in the near term, prompting speculation that the timing had slipped.

The timing of the IPO filing had not yet been set and hinges on the progress GM makes on securing a credit facility in ongoing talks with banks, according to one of the sources, who could not be named because preparations for the capital raising remain private.

GM, now 61 percent-owned by the U.S. government, is counting on the momentum from its second consecutive quarter of profits to help it clinch a $5 billion bank credit facility as it prepares for a stock offering by year end.

CNBC first reported that the timing for the GM IPO filing could be as early as Friday.

GM had no comment. The automaker and White House officials have repeatedly said that they expect to complete a stock offering by the year's end.

The U.S. automaker is expected to file for an IPO worth up to $20 billion. At that size, it would be the biggest U.S. IPO since Visa Inc's $19.7 billion offering in March 2008 and one of the biggest IPOs of all time.

GM is due to report quarterly results on Thursday morning.

A successful GM IPO would provide the Obama administration with evidence for its argument that its unprecedented intervention in the U.S. auto industry in 2009 has been a financial success even as it saved jobs.

GM was bailed out with $50 billion in U.S. government money, which let it restructure in bankruptcy. It has paid back $7 billion.

The U.S. government needs to see GM valued at more than $70 billion in a stock listing for U.S. taxpayers to break even on the $43 billion invested in exchange for a 61 percent stake in the automaker.

(Reporting by Clare Baldwin and Soyoung Kim in New York and Philipp Halstrick in Frankfurt. Editing by Robert MacMillan)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

Coal Block Allocation

Coal Block Allocation

Government urges Supreme Court to not cancel some 'illegal' coal mines  Full Article 

Modi in Japan

Modi in Japan

Japan and India agree to boost strategic ties at summit  Full Article 

Basel III Norms

Basel III Norms

RBI amends Basel III guidelines for banks  Full Article 

HSBC PMI

HSBC PMI

Factory activity expands at slower clip in August.  Full Article 

Current Account

Current Account

Balance of payments surplus for third straight quarter  Full Article 

India Infrastructure

India Infrastructure

RBI rule handicaps India's infrastructure hopes  Full Article 

Book Talk

Book Talk

Reema Abbasi and a glimpse of Pakistan’s Hindu past  Full Article 

China Economy

China Economy

Retreat in China's PMIs heightens calls for policy easing.  Full Article 

Managing Share Sales

Managing Share Sales

Govt seeks bids from banks to manage PFC, REC share sales   Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage