GM IPO: Open to All Investors
Read Full Story
There have been some questions over the past few weeks about whether the General Motors IPO would be open to any and all investors or whether there might be some restrictions on money put into the shares from investors overseas. GM made it clear, recently, that the U.S. Treasury would hold some of its share indefinitely as opposed to disposing of them as soon after the IPO as possible. That means the government will be a long-term investor, presumably with a long-term say in the future ownership make-up of the company
The Treasury Department said
late on September 17th that "We expect that potential investors will be sought across multiple geographies with a focus on North American investors, in line with what is typical in similar transactions."
The Treasury wants to lower the 61% of GM that it owns on behalf of American taxpayers. The growth of the car industry is not as robust as it was earlier this year. The people at the Treasury may think "the more the merrier." At least a large number of investors could cause a surge of interest at the IPO which, perhaps, could be sustained.