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General Motors: Foreigners should stay out of GM's IPO

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D as wanted prevent the officials, wrote the newspaper on Friday (3.9.). Too much influence from foreign investors would have explosive political power: a year ago, US taxpayers saved GM from bankruptcy with $ 50 billion.

US government relies on anchor investors

Since then, the state has held a majority of almost 61 percent in the company, but now wants to withdraw. If foreign investors were to take over large blocks of shares, the impression could quickly arise that they were ultimately the beneficiaries of the state bailout. The Ministry of Finance can control the entry of foreigners in such a way that it controls the selection of so-called anchor investors. These anchor investors ensure the success of an IPO by taking over large blocks of shares and often receiving a discount in return.

In the coming weeks the decision will be made who the anchor investors are. The IPO itself is expected in November. Upcoming elections in the time increase the pressure on the government.

Fear of Arab and Asian sovereign wealth funds

Sovereign wealth funds, especially from the Arab and Asian regions, are among the most potent investors of all. Many Arab states have invested their oil billions in American and European corporations through these funds. Vehicle manufacturers are particularly popular destinations for the car-crazy sheikhs. The emirate of Qatar is a major shareholder in Volkswagen, Abu Dhabi and Kuwait have invested a lot of money in Daimler.

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