Posts Tagged ‘GM IPO’

Eye View Business, GE Buys 25,000 Chevy Volts, Tries To Put A Charge In GM Stock

November 12, 2010

GE said Thursday it will buy 25,000 electric vehicles for its fleet through 2015 in the largest-ever purchase of electric cars.

GE will begin with an initial purchase of 12,000 vehicles from General Motor Co., starting with Chevy Volt in 2011. The conglomerate said it “will add other vehicles as manufacturers expand their electric vehicle profiles.”

The first Chevrolet Volt is expected to roll off production lines later this month.

GE’s feeable  attempt to  put a charge in the  price of GM stock prior to Wall Streets initial public offering  of GM stock. Not much of a concept.

US Taxpayers To Take A Bath On IPO Of GM Stockshares

September 4, 2010

The U.S. government is likely to take a loss on General Motors Co [GM.UL] in the first offering of the automaker’s stock, six people familiar with preparations for the landmark IPO said.

Subsequent offerings of the government’s holdings may be profitable depending on how investors trade the newly listed stock, the sources said.

A decision to price the initial GM shares below the cost to taxpayers would follow the usual Wall Street practice of giving the first investors in a new stock a discount, but it could also help allay investor concern in the face of the slow recovery of the U.S. economy and flat auto sales.

But the question of whether taxpayers are ultimately made whole on GM’s $50 billion bailout could be left open for years, the people said.

It could take more than three years for the Treasury to sell down its remaining stake in GM after the IPO, one person said. That would push a final accounting into the next presidential term. As usual, timing on IPO offering in this economic climate is for polical reasons and not economic reasons.

Taxpayers likely to take  bath on the IPO of GM stock..