GM Readies Stock Offering
The Detroit News reports that General Motors is planning to launch a public stock offering as early as next week. If that news is correct, the offering would happen months sooner than most analysts and officials had predicted.
Most of them believed that an initial public stock offering would wait until the value of the company and its stock would recoup nearly all the $50 billion the government loaned GM for a 60.8% stake in the company. However, the Detroit News says that estimates for an IPO next week would fall nearly $10 billion short of that figure.
While an IPO is a sure sign that GM has become a healthy company once again, it’s uncertain how taxpayers will react if the loans aren’t repaid in full.
GM Gets Ready for Public Stock Offering (The Detroit News)