Monday, May 31, 2010

U.S. hires lead bank for General Motors IPO



by Sam Abuelsamid

The government of the United States may be actively avoiding any direct involvement in the day-to-day management of General Motors, but that doesn't mean it won't have a say when the time comes for the automaker to go public again. According to The Detroit News, the U.S. Department of the Treasury has hired investment bank Lazard Frères & Co. to provide it with advice on the initial public offering process.

While both General Motors and the Treasury would obviously both like the latter to unload the majority stake it owns in the automaker as soon as possible, that process needs to be done carefully. Political and public perception considerations point to an early IPO, but that may not be the smartest thing to do from a business perspective. Selling before its clear that GM's recovery is well underway could lead to getting too low a share price. The bank will reportedly also look at other options for disposing of the 61 percent shareholding.

According to the report, Lazard Frères & Co. will get paid $500,000 a month for the first year and $250,000 per month after that if the sale hasn't yet been completed. Estimates from various sources are that the treasury will face losses of $25-30 billion on the bailouts of GM, Chrysler and GMAC.

3 comments:

Juanita said...

Hello,

My name is Junita. I am a professional blogger who loves to write on financial topics. I'm writing to you because I am currently trying to take my author identity to the next level by supplying informative articles to personal finance bloggers. I don't believe in writing promotional articles, instead I feel informative stuff are something users are most interested in reading.

I would hereby like to request an opportunity to write a guest post on your site, ofcourse free of charge. You can send me your preferred topic, if any, and I would be happy to write an article on it. I can show you some of my past work that have attracted good number of visitors.

Anyways, you are doing a great job on with your blog and I'd like to talk to you in person, so I'd be happy if you could answer either way!

Sincerely,
Junita Martinez
junita10mrt@gmail.com

beant bajwa said...

I found this blog very informative and useful for everyone. Thank you for such a wonderful post. can you also write something about limo hire

Deepika said...

Hi this is deepika.As its full of information site & i m a car lover & wanna buy a car either BMW 6 or limo.
So i want more and more information about these cars.But if there is some another best option, So u can also send me information about that option on my email id.
bpo

My Car Facts © 2008. Free Blogspot Templates Sponsored by: Tutorial87 Commentcute
This template is Edited and brought to you by : allblogtools.com Blogger Templates