GM moving closer to November stock sale
General Motors (or should I say General Motors Holding Company) is planning to hold a public stock sale in mid-November. It will be the first since the world's largest company emerged from chapter 11 bankruptcy reorganization last year.
The U.S. Department of Treasury put up close to $58 billion to help the leaner GM get off the ground. The investment means that the government owns a majority stake in the company. It's a stake the Obama Administration and the company is not keen to hold onto.
Now, the Associated Press reports that Treasury Secretary Timothy Geithner and new General Motors CEO Dan Akerson will meet for the first time in New York this afternoon:
Akerson...says it could take a couple of years to sell all the stock, and the government's bailout watchdog says the shares will have to sell for more than $133 each to recoup the taxpayer dollars. A relatively small initial sale is likely, $10 billion or less.
The AP reports that the two could be discussing the size of the initial public stock offering.