Biz Brief: Morgan Stanley and JPMorgan Likely to Lead GM IPO
GM and Treasury officials met with senior executives from nearly all of Wall Street's banks in the past month about hiring a lead underwriter. Among those also vying for the job were Goldman Sachs (GS), Bank of America (BAC) and Citigroup (C).
After General Motors filed for bankruptcy just over a year ago, the U.S. government helped it emerged from court protection with a $50 billion bailout. The government now holds a 61% stake in GM and is looking for ways to get repaid. An IPO could raise as much as $10 billion.
While it might also be one of the biggest underwriting deals of the last five years, the fees are relatively small and could fetch a total fee pool of $100 million if the valuation were $10 billion, the WSJ said.