US Treasury mulls over foreign investors in GM IPO
Published on Fri, Sep 03, 2010 at 15:34 | Source : Reuters
Updated at Fri, Sep 03, 2010 at 16:27
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US Treasury mulls over foreign investors in GM IPO
The US Treasury is concerned about how many foreign investors it should allow to buy big stakes in General Motors Co's proposed initial public offering, the Wall Street Journal said.
The US Treasury is concerned about how many foreign investors it should allow to buy big stakes in General Motors Co's proposed initial public offering, the Wall Street Journal said.
The Treasury is cautious because it is looking to minimise any political fallout from the IPO, the Journal said, citing people familiar with the matter.
The Treasury may decide which of the non-U.S. investors, such as sovereign wealth funds, should be invited to be "cornerstone" investors, the people told the Journal.
Cornerstone investors are selected to commit to buying and holding a large stake at a set share price as a show of confidence intended to draw in other investors.
General Motors took a big step toward repaying a controversial taxpayer-funded bailout by declaring plans for a landmark stock offering that represents a critical test for the Obama administration.
The U.S. government currently owns almost 61% of GM after converting USD 43 billion of the USD 50 billion in funding to the automaker into equity.
The U.S. Treasury could not immediately be reached for comment by Reuters outside regular U.S. business hours.
