đź“° Auto News BREAKING: General Motors files for IPO

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http://www.autoblog.com/2010/08/18/breaking-general-motors-files-for-ipo/

General Motors, the largest automaker based in the United States, has officially filed paperwork with the Securities and Exchange Commission for an Initial Public Offering.

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By offering preferred stock along with its IPO, GM is looking to allow the U.S. Treasury (and by extension, American taxpayers) the chance to reduce its stake in the automaker as much as possible. Unlike common stock, preferred stock carries both debt and equity, is rated by the world's credit rating companies and typically has priority over common stock in the event that the company goes into bankruptcy.

According to Bloomberg, the U.S. Treasury intends to sell a fifth of its 304 million common shares as part of the IPO, which will make the government a minority shareholder.

If GM raises the expected $16 billion in its IPO, it will rank as the second-largest in U.S. history behind Visa's $19.7 billion in 2008. The offering will be led by Morgan Stanley, JPMorgan Chase & Co., Bank of America Corp. and Citigroup Inc. Official GM fine print is available after the jump.
 

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The treasury wants out so stock holders can take the hit. haha

This has been talked about for weeks already. Lets see....GM buys a loan firm, AmeriCredit Corp. for $3.5 Billion. Yet their loans from the gov are not paid back. The reason to purchase the loan firm??? To offer loans to risky / subprime applicants. They post second quarter profits, file for IPO and the election is coming up. House of cards?

They gov already started new programs to make it look like it is helping people. Paying mortgages for people with out renegotiating the banks terms. So bottom line it is a way to get the banks more money. More programs will come along before the election as well. They need a strong push to make people happy and thinking the things they have done are making a change. A large sucess story, well the way the gov writes it, like the come back of GM looks impressive. Happy people = voters to vote your way.
 

jason05gt

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The treasury wants out so stock holders can take the hit. haha

This has been talked about for weeks already. Lets see....GM buys a loan firm, AmeriCredit Corp. for $3.5 Billion. Yet their loans from the gov are not paid back. The reason to purchase the loan firm??? To offer loans to risky / subprime applicants. They post second quarter profits, file for IPO and the election is coming up. House of cards?

They gov already started new programs to make it look like it is helping people. Paying mortgages for people with out renegotiating the banks terms. So bottom line it is a way to get the banks more money. More programs will come along before the election as well. They need a strong push to make people happy and thinking the things they have done are making a change. A large sucess story, well the way the gov writes it, like the come back of GM looks impressive. Happy people = voters to vote your way.

The IPO is happening due to politics, not to maximize shareholder wealthe IMO. Obama's ratings are in the dumps, so taking GM public helps his cause.
 
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