D och Even with this manageable IPO, the stake that the US government holds in GM falls below the psychologically important threshold of 50 percent.
US government is trying to get its money back
US -Media reported unanimously about the plans that are to be made official in the course of Tuesday (November 2nd). The US taxpayers saved GM from bankruptcy a year ago with a cash injection of around 50 billion dollars and have since held just under 61 percent of the shares. In addition, the Canadians injected money to enable the ailing automaker to restart. As a result, the governments took control of the company.
Selling shares is now supposed to bring the money back piece by piece. A total of 365 million papers at 26 to 29 dollars each are to go to investors. There are also preferred shares without voting rights. The comparatively small number of units reduces the risk that GM will not get rid of the shares or only get rid of them below their value.
The first trading day is planned for November 18th. The timing seems propitious as auto sales have been picking up for a few months and GM is finally making a profit again. In addition, there are congressional elections and US President Barack Obama needs good news from the economic front. Observers predict a debacle for his Democrats.