G.M. Said to Be Close to Stock Offering

[Omaha Steve]

Source: NY Times

By NICK BUNKLEY and MICHAEL DE LA MERCED

DETROIT — General Motors could file for an initial public offering of stock as soon as Friday, allowing the government to begin selling its stake in the automaker within several months, people briefed on the matter said Wednesday.

G.M. is expected to report a second-quarter profit on Thursday of $1 billion or more, setting the stage for the long-awaited filing. A week ago, G.M.’s chief executive, Edward E. Whitacre Jr., said the company was drafting the paperwork and planned to file a stock registration in “the near future.”

Through its sponsorship of the automaker’s bankruptcy last summer — including more than $50 billion in loans — the Treasury Department holds about 61 percent of G.M.

The automaker is also making progress in lining up a $5 billion credit facility from several major banks to help provide an additional backstop, the people briefed on G.M.’s plans said. These people spoke on condition of anonymity because the filing has not been made public.


Read more: http://www.nytimes.com/2010/08/12/business/12gm.html?pa...

[jpak]

1. Hundreds of thousands of American jobs were saved Obama and the Dems

- but who's counting?

[Lightning Count]

2. I had GM stock before there was no GM stock.

Do I get new stock now?

[Botany]

3. So once G.M. has the I.P.O. then it will buy back the 61% owned by us.

That damn socialist Obama, G.M. has now paid back all the federal loan and with interest. And shortly
G.M. will buy back the stock that the U.S. government owns in the company and at a profit for
the American taxpayer too.





I wonder what the teabaggers, Rep. Boner, and Fox New will say about this? My guess is nothing.

Obama: "I Don't Want To Run Auto Companies" 4/29/2009

[Lightning Count]

4. Not exactly.

GM's net profit was 865 million. The bailout was 50 billion. So try to figure out how GM has paid the loans in full. Not to say that they may not someday.

http://www.forbes.com/2010/04/23/general-motors-economy...

[Botany]

5. G.M. has already paid back the loan part and w/ interest .... last spring

Something like 15 billion dollars .... the 40 or 50 billion dollars that was the value of the
stock that the U.S. Government owns/bought in G.M. will be paid back and w/ interest
from the capital raised by the I.P.O. when they are allowed to sell stock again in the
company.

[Psephos]

6. wow, you really should use google before posting wrong numbers like that n/t

[Botany]

7. Sorry it was an 8.1 Billion loan not a 15 billion loan

4/22/10

"Fallen giant General Motors Co. accelerated toward recovery Wednesday, announcing the repayment of
$8.1 billion in U.S. and Canadian government loans five years ahead of schedule."

http://firedoglake.com/2010/04/22/gm-pays-back-governme... /


But the total balance covered by the stock bought by the U.S. government will be paid off or bought back after G.M. is allowed
to give a stock offering. I might be wrong on the math but the U.S. Government will get back a total of $57.6 billion and w/
interest too.



"On June 1, 2009, the company filed for a Chapter 11 reorganization, which was completed on July 10 of the same year, and it was
thereafter reorganized once a new entity acquired the most valuable assets. GM is now temporarily majority owned by the United
States Treasury and, to a smaller extent, the Canada Development Investment Corporation and the government of Ontario,
with the U.S. government investing a total of US$57.6 billion under the Troubled Asset Relief Program."

http://en.wikipedia.org/wiki/General_Motors

[Lightning Count]

8. This should be an easy question to answer then.

GM has made no where near 8.1B in the last year. How did they pay it back?

It's corporate accounting tricks. This article does an excellent job explaining it.

http://www.forbes.com/2010/04/23/general-motors-economy...

[Lance_Boyle]

9. The govt could only recover its losses on GM stock

if the IPO raised well over $57.6 billion. It will not. We got screwed. But hey, a couple hundred people got to keep their jobs. Well worth those billions...

[SpartanDem]

10. More like couple hundred thousand

but who is counting?