General Motors prepares for initial public offering

By Brett Davis | September 07th, 2010

That’s right. You, me and everyone else in between will soon be able to buy General Motors shares. The initial public offering (IPO) will also give large overseas investors the chance to take large stakes in the company, which is concerning the US Treasury.

‘Cornerstone’ shares will offer the chance for large investors, not normally general members of the public, the chance to buy into large chunks of GM. The company and the US Treasury is worried that overseas investors may disrupt what little stability the company has left. This could certainly be true in the evident of a political dispute between America and the other country that buys in.

According to the Wall Street Journal, government officials are suggesting the company ‘filters’ which large cornerstone investors can buy the shares. Reports also say the company might need to limit the number of foreign investors invited to take part in the IPO.

For further reassurance in the company, the new GM CEO, Dan Akerson, has told the board that he’ll be staying with the company for the long term. Unlike the previous CEO who just lasted 18 months, Akerson was said to present a number of incentives at a recent meeting which would take effect over the next few years. This was a way that Akerson could prove to investors that he would be with the company to live out these incentives and provide long-term commitment in the company’s full recovery.

Goodfa

To get a good public response they should offer shareholder discounts on their cars.(eg:Shareholder gets $2,000 off negotiated price on a Commodore)
This should also get good customer loyalty.

JEKYL & HYDE

you will be saddened to know that the g.m. westpac mastercard maximum rebate ($3k) is finishing soon too…
D

Most shareholders would much prefer increased dividends rather than a discount on a car.

Goodfa

I actually think that giving shareholder discounts will buy their loyalty hence increasing profits/dividends.

ABMPSV

I am not sure that this is a good investment. So many time the government helped GM with billions of $. Price will go up than…. in few years time…you know the story.
laurie

What they are really worried about are the Chinese trying to avoid saying it aloud. They have Volvo who’s next GM!!

laurie
Direct Injection

I couldnt think of a more risky investment than this. You would have to be a total dickhead to put your money anywhere near GM, especially as they are basically a Government owned company and have billions to pay back. They will be bankrupot again in five years……..isnt the Government sick of bailing them out?
http://bleditor.com Flutter Drew

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Sprat

I think I will keep to buying toilet paper, probably end up in the same place.