GM to file mid-August IPO: sources
General Motors Co GM.UL plans to file its nearly $20 billion initial public offering in mid-August, a source familiar with the situation said Friday, later than some expected as bankers work to help sort out the automaker's finances post-bankruptcy.
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Source: GM to file mid-August IPO: sources
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General Motors is also in talks with banks for a revolving credit line worth $5 billion, sources said. Bank of America Corp (BAC.N), Citigroup Inc (C.N), JPMorgan Chase & Co (JPM.N) and Morgan Stanley (MS.N) have already agreed to provide $500 million of credit each, with other banks still to be chosen, a source said. The credit line is expected to be finalized in the next two weeks, about a month before the automaker files for its IPO, a source said. Earlier media reports said the IPO filing was expected in early July. GM spokeswoman Noreen Pratscher declined to comment. GM, which declared bankruptcy last year, has emerged from Chapter 11 protection, and an IPO is a key step for the automaker to wean itself from government support. GM is more likely to cut the valuation on the IPO than delay it and is looking for a broad investor base, said one source, who requested anonymity because the talks are confidential. The U.S. Treasury, which owns nearly 61 percent of the automaker's common shares after a $50 billion bailout, plans to sell 20 percent to 24 percent of its stake -- $10 billion to $12 billion worth of shares, sources said. The sources cautioned the details of the deal are not yet finalized and could change. A Treasury official said it is too early to say how much it would sell. |
Source: GM to file mid-August IPO: sources
