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G.M. Said to Plan Cut in U.S. Stake by a Third
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| Contributor | ArmyDem |
| Last Edited | ArmyDem Nov 02, 2010 01:24am |
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| Category | News |
| Media | Newspaper - New York Times |
| News Date | Monday, November 1, 2010 07:00:00 AM UTC0:0 |
| Description | By MICHAEL J. de la MERCED and BILL VLASIC
Published: November 1, 2010
General Motors will succeed in shrinking the federal government’s ownership stake to less than 50 percent in a $10.6 billion initial public offering later this month, people briefed on the matter said on Monday.
G.M. is expected to sell about 365 million common shares at $26 to $29 each, these people said. It also plans to sell up to $3 billion worth of preferred shares that will later convert into common shares.
The automaker is planning a three-for-one stock split that will bring its total outstanding shares to about 1.5 billion, one of these people said.
These people spoke on the condition of anonymity because they were not authorized to discuss details of the offering before they are disclosed in a public filing, which could come as soon as Tuesday.
At the high end of the offering’s proposed price range, G.M.’s market value could approach $60 billion, exceeding the $48.9 billion capitalization of the Ford Motor Company.
Through the offering, the Treasury Department, which gained a 61 percent stake in G.M. as part of its $50 billion bailout of the company last year, will sell about $7 billion worth of shares. That will cut its holdings in the company to just more than 43 percent, these people said. |
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