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GM IPO what it means
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by YankeeJim | August 18, 2010 at 01:24 pm
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Would you buy a car from GM?
If you say yes, you might by GM stock. It used to be a very safe bet. If I were 30 years old, I would definitely consider it. In fact, I would get a bunch of 30 year olds together, form an investment club and buy enough of the stock to have some influence. You could definitely influence management. The company needs to be run by 35-45 year olds in middle management and a little older senior management. That way, you can put some life into the company and spur it to become globally competitive.
As for car designers, get some freshouts from top product design schools. Leapfrog the GM legacy, that should be the strategy.
GM wants its corporate freedom and to get out from under public ownership. The IPO is a first step. For investors, it is time to shake the hell out of that place with a dose of entrepreneurial spirit like they haven’t seen since William Crapo "Billy" Durant.
Another thing, get the HQ out of Detroit.
“General Motors files paperwork for historic public stock offering
Washington Post Staff Writer
Wednesday, August 18, 2010; 5:00 PMGeneral Motors filed paperwork Wednesday afternoon for what is expected to be one of the largest initial public offerings of stock in history, setting the stage for the U.S. government to begin selling its majority stake in the automaker.
Whether the federal government can recoup all of the approximately $50 billion it invested in the company depends largely on the price of the company's shares. But the stock price was not disclosed in Wednesday's filing with regulators.
The total offering is expected to raise more than $10 billion and could approach $20 billion, according to sources familiar with the company's planning. The stock could begin trading sometime at the end of the year, the sources said, speaking on condition of anonymity because they were not authorized to discuss the matter publicly.
In its filing with the Securities and Exchange Commission, the company said it will be listed as "GM" on the New York Stock Exchange and trade on the Toronto Stock Exchange as well.
The government is planning to sell enough shares to reduce its 61 percent ownership stake in the company to about 50 percent. The Treasury Department said in a statement that it also owns $2 billion of preferred shares in GM that it said would not be sold in the offering.
Earlier this year, the company repaid about $6.7 billion in government loans.”
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Most RecentMost Recommended Comments (1)
at 05:36 on August 19th, 2010
New American autos should be made in Ohio or Pennsylvania and designed in California.