Overallotment makes GM IPO largest in World backed by Euro Money
UNCENSORED NEWS | November 26, 2010 at 05:47 pmby
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The firms include Morgan Stanley (MS), JP Morgan Chase (JPM), Bank of America (BAC), and Citigroup (C). According to Reuters, "The added shares vaulted GM past Agricultural Bank of China's $22.1 billion IPO in July and underscored the strong demand for the taxpayer-rescued automaker's stock."
General Motors Co's underwriters exercised their full overallotment option, making the initial public offering of the U.S. automaker the biggest in the world, at $23.1 billion. The underwriters, led by Morgan Stanley , JPMorgan Chase Co , Bank of America, Merrill Lynch and Citigroup Inc , exercised their option on an additional 71.7 million shares worth $2.37 billion. They also exercised their option to purchase 13 million shares of mandatory convertible junior preferred stock for $650 million, GM said on Friday.
They also exercised their option to purchase 13 million shares of mandatory convertible junior preferred stock for $650 million, GM said on Friday.
The Treasury may decide which of the non-U.S. investors, such as sovereign wealth funds, should be invited to be "cornerstone" investors, the people told the Journal.
Citigroup is one of the Big Four banks in the United States, along with Bank of America, JP Morgan Chase and Wells Fargo.
Significant losses were attributed to the drop in value of its large and unhedged mortgage portfolio in the form of Collateralized Debt Obligations.
All in all, the percentage of shares held abroad rose to 54% (year-end 2008: 45%), while the percentage of shares held in Germany accordingly fell to 46% (year-end 2008: 55%).
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