DETROIT (AP) — Investment bankers handling the upcoming General Motors Co. stock sale are expected to court foreign investors as well as those in North America, according to a U.S. Treasury Department statement.
AP
GM and the Treasury Department would not comment Sunday on reports that the automaker is in talks with its current partner in China, SAIC, about buying a stake in the Detroit company. SAIC is owned by the Chinese government.
The Treasury Department, in a statement issued late Friday, said investors in GM would be sought across “multiple geographies,” with a focus on North America.
The U.S. Treasury loaned GM about $50 billion to help it through bankruptcy protection last year. GM has repaid $6.7 billion. The rest of the bailout money was converted to a 61 percent government stake in the company.
The government hopes to get the remaining $43 billion back with stock sales that could start in November.
Foreign investment in U.S. automakers and other companies is common. Before the stock sale, GM will put on a two-week “road show” of presentations for investors, and several stops are expected to be in cities outside the U.S.
The Treasury statement also said banks underwriting the GM stock sale will be expected to balance getting the maximum price per share and return for taxpayers with having a stable base of shareholders and keeping up interest in several sales that will occur after the initial public offering.
Individual investors will get “ample opportunity” to buy GM shares, but institutional investors such as mutual funds, hedge funds and pension funds will be sought out, the statement said.
“We expect that a large and diverse group of institutional investors will be offered an opportunity to participate, with no single investor or group of investors receiving a disproportionate share or unusual treatment,” the statement said.
The government will make ensure general guidelines are followed in the sale “but will not involve itself in decisions regarding allocation of shares to specific buyers,” the statement said.
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Comments (79)
Red Neckerson
Posted on September 20, 2010 at 8:24amThey’ll have to change the name to CM ~ Chinese Motors. You just thought the Yugo was bad wait until you buy a CheeM.rofl
Report Post »hempstead1944
Posted on September 20, 2010 at 8:21amObama administration selling american businesses to foreigners…..wonder how much Alexrod, Jarrett and Rahm profited personally from this scam?
Report Post »Richardpgr
Posted on September 20, 2010 at 8:19amGM will end up producing only government fleet cars.
Report Post »wingedwolf
Posted on September 20, 2010 at 8:16amTHIS is what the unions want…..foreign investors coming in and having a say in American car companies? New GM plant in Mexico? THIS is how the union thug organizer in chief treats HIS OWN BASE? 2012 can’t possible come too soon. I have great disdain for unions because they have become so very corrupt they can’t be reasoned with and are losing jobs for people. I have money to invest, and I used to think I would try to get some small business open here to benefit my community and friends and neighbors, but for fear of union interference I just won’t do it. The instant a union rep walked in my door I would shut the place down. I already have what I need to live, I was thinking of what might benefit my community. I would
Report Post »printdesignchicago.com
Posted on September 20, 2010 at 8:13ami have never liked GM cars anyway. let them go bankrupt. the workers? well, maybe if the unions didn’t do things that are unsustainable GM would be able to pay their employees, make money on cars and be a bastion of American Enterprise. maybe then they wouldn‘t need ’bailouts’ to keep UNIONS GOING.
this is all another giant union scam.
Report Post »psst
Posted on September 20, 2010 at 7:59amAll my vehicles for the past 40 yrs have been GM vehicles. I avoided Ford.. The Ford Foundation supports too many radical causes.
Report Post »But! this year I bought a new Ford 150XLT.. I did not want to go w/ Toyota or Nissan..
I figured what the hell. So the Ford Foundation supports radical causes. GM is now controlled by communists. Chrystler products was never a thought.
Both GM and Chrystler should have gone bankrupt, and let the chips fall where they may..
Labour and management have to work together.. A happy medium so to speak.
In the past, Unions were a good thing for workers.. Management took advantage.. Then the pendulum swung too far in labours’ direction. The Unons became more and more demanding. Enough was never enough as their workers turned out inferior products. And weak management caved in to never ending Union demands.
American car companies are finally closing or have closed the technology gap w/ their foreign competitors. But the damage has been done.
Let foreigners have GM.. Both GM’s management and the Unions are complicit in their predicament.
The cash for clunkers was Hussein using taxpayers $$ to subsidize GM and the Unions even more..
The unions owns Hussein. They deserves each other.. Let foreign owners take over and mayne the taxpayers will be finally off the hook. Enough is enough..
NC
Posted on September 20, 2010 at 7:36amGM makes a car that is inferior to the foreign competition.
GM waves the red, white, and blue telling us to buy American.
GM waves the white flag telling us we are failing and since you didn’t buy enough cars, you must now buy the company.
GM waves the victory flag telling us they have paid back the US, when actually they only paid back a portion and the rest is held in stocks by the taxpayer.
Now, GM is waving the white flag again seeking foreign investors.
Will GM next wave a red flag signifying majority ownership by the Chinese govt?
NC (is seeing red and it ain’t a flag))
Report Post »swkimbl
Posted on September 20, 2010 at 7:16amwhat is obama’s plan, buy a company tear it apart from within then sell it of to over seas investors?
Report Post »Just one more step th the distruction of america.
Tatum
Posted on September 20, 2010 at 6:11amGovernment Could Seek Foreign Investors for GM?
THEY SHOULD BECAUSE AMERICANS HAVE HAD ENOUGH GovMot.
Report Post »Hondaman
Posted on September 20, 2010 at 6:01amWhat on earth is wrong with these people that want foreign investors for Government Motors? Bet you money it is by encouragement from our resident communist (Mr Haussain obama).
Report Post »nothingbuthetruth
Posted on September 20, 2010 at 5:55amThey will have to, no one trusts Government Motors after Obama screwed the bond holders. Why anybody would trust this guy is beyond me.
Report Post »red penny
Posted on September 20, 2010 at 5:34amI, like most Americans, will buy Ametrican made products when I can. The federal government should not have bailed out GM and Chrysler.The free market should have been allowed to correct the problem over time and one or both companies should have declared bankruptcy
Report Post »Devil in Arkansas
Posted on September 20, 2010 at 5:13amThis is insane. We now have to witness the ownership of one of America’s greatest companies split up by a hodge-podge of foreign investors, overseen by a branch of the Government who simply prints more money when their policies fail. Sorry, but this typical ‘don’t worry, the Government will make sure it gets done right’ rhetoric is just more of the same load of crap we have endured for too long. Once again, the taxpayer loses big-time because the wiener-heads we elected fumbled the ball. We’re going to have to take a big hit on this one, but, MAYBE the citizens of this still great nation will finally wake up and start to demand more of those we elect, and to work on getting our Government back to governing instead of interfering in every facet of our lives. This Obaman experiment in Socialism should be a wake-up call, folks.
Report Post »Marylou7
Posted on September 20, 2010 at 5:13amReally don’t know what to say about this situation, only God knows what‘s best so I’ll pray that His Will be done. Wish we could say our autos are truly American made, but are any of them?
Report Post »e-merlin
Posted on September 20, 2010 at 4:32amI’d love to see an American car on par with what the rest of the world offers. I grew up a Pontiac guy. I’ve had a bunch of them.
Report Post »Freelancer
Posted on September 20, 2010 at 8:59amThe last brand new auto I purchased was in 1999 and I bought a Jeep. Other than the horrible fuel mileage, I have been very satisfied with it. Jeeps do NOT have a good resale value at all. Last year, what was originally purchased for $27,000 was worth only $4,000 (mind you it is in MINT condition with only 29,000 miles on it) but thanks to the Cash for Clunkers handout, it has doubled in value and still climbing. But Chrysler was given a bailout so buying another product of theirs is off the list. Everyone says “buy American” however when union workers are handed everything and the government violates contract law and agreements leaving the people who allowed the company to operate by investing in it lose everything, I refuse to buy their products PERIOD! I really do not think that GM is going to survive that much longer – possibly 3-5 years if that. There has NEVER been a government operation that turned a profit or was managed correctly. The Volt is going to be GM’s swan song. I have several GM retirees in my family and they are all preparing to deal with not having their benefits in the near future. Every one of them is setting money aside and planning for the worst as even they can see the writing on the wall. They are scared to death and there is not one thing that they can do about it.
Report Post »carrera
Posted on September 21, 2010 at 9:37amFreelancer- The 1993-2004 Jeep Grand Cherokees are currently under investigation for catching fire after an accident. According to Automotive News 55 deaths have been reported. Interestingly, you don’t hear NHTSA warning the public, Ray Lahood is not telling you to park it in your driveway, NASA has not been called in to investigate, no Congressional hearings and angry tirades, Chrysler board members have not been mandated to testify, no inquisition not even a recall, but then again Chrysler is now part of the Government Motors seizure program.
Report Post »ILOVEJESUS
Posted on September 20, 2010 at 4:11amMegansMom – Can I tell you about some Ford products then!?
Report Post »Patriotbeliever
Posted on September 20, 2010 at 4:16amPlease, let us know about what the Ford producsts are.
Report Post »TomBurpee
Posted on September 20, 2010 at 5:57amDespite what the President believes, Ford didn’t take any Government money.. They restructured on their own, and seem to be doing pretty well for it..
Report Post »Patriotbeliever
Posted on September 20, 2010 at 4:02amI pray that the Lord will insure that we keep the auto industry under our contol.
Report Post »megansmom
Posted on September 20, 2010 at 3:34amI guess after they screwed the American investors out of what was rightfully their’s by law no one in this hemisphere will invest in GM,
Report Post »I believe in buying American made goods when ever possible but not one run by our government. With On star it just gives them another tool to control us with. And yes I may be a little paranoid but times are calling for being paranoid.
Patriotbeliever
Posted on September 20, 2010 at 4:16amAmen for that!
Report Post »BEYES
Posted on September 20, 2010 at 9:14amI couldn’t agree more. It as a crime what happened to the bond holders and all in the name of payingback political favors to the unions. It doesn’t surprise me they look to foreign investors instead of individual American investors. Look at how they get treated! So now we‘re looking t a gov’t run auto maker possibly supported financially by a communist China? Wow,I’ll bet the sheep never saw that kind of “Change” coming.
Report Post »ILOVEJESUS
Posted on September 20, 2010 at 3:21amI grew up in Flint, MI. Everybody I knew worked for GM, except my parents, but including my grandpa and some uncles. That company may have screwed up (the powers that be there), but they HAVE employed tons of people for like 100 years, and they continue to. I do NOT want them owned by foreigners, esp. another government. I married a Ford man and am proud of what that company has become. I am proud of their high safety ratings, and that they did not borrow government money, and that they cut way back in order to make it through. I don’t want either company to fail. I want the powers that be in these companies to do what is right, and I want them owned by American shareholders. I am tired of our great country falling thru my fingers and in MI, this is a big part of our life. Please buy American and know it matters.
Report Post »Patriotbeliever
Posted on September 20, 2010 at 4:18amWe must pray for Flint. The Lord will prevail! Have faith, as Glen says!
Report Post »seayalater73
Posted on September 20, 2010 at 2:18amCan anybody tell me, besides the obviouse issues with raising capital, why anyone hasn’t been able to just start a NEW automotive firm? I suspect there would actually be far more legal than financial hurtles. If we cared about our ecomony we would be asking about this. It is part of the problem that traces back before GM bailout and current economic downturn. When was the last time we were a truly capitalist nation?
Report Post »Patriotbeliever
Posted on September 20, 2010 at 4:13amI think that finacicially their are problems. The amount of capital has to be at least a couple of billion dollars. Technology is also a concern and we have to invest a lot of money to insure that we have the best tecnology. We dont have a lot of money now because of the losses in the last couple of years and we dont really have the best tecnology. We need to insure that are future leaders have a better idea of wear we are going.
Report Post »seayalater73
Posted on September 20, 2010 at 4:27amYour probably as right about the money as any estimate can be. Still, plenty of start-ups have snowballed past that with less $$$. I do not agree with you about the technology aspect, maybe becuase I have more confidence in our entrepenuers. Maybe it is misplaced, but better there than anywhere near a “car czar.” So why aren’t we hearing about anyone at least attempting this?
Report Post »PostProgressiveAmerican
Posted on September 20, 2010 at 5:12amThe start-up capital is an issue, but so are the Gov’t regulations. I think the effort and expense related to the regulations would be a show stopper.
Report Post »RealityCheck
Posted on September 20, 2010 at 2:17amYa, just bash a company that helped create a middle class, played a huge role in our victory in WW2. Yes, this company pays it’s employees too much money and takes on tax hikes to prices on exported cars while their competition imports with tax breaks. Heaven forbid Americans support other American jobs by buying products we can produce here, which employee people here who with a job would buy your products you sell. Lets just buy those things from over seas and not think about how were giving them money which doesn’t go to current debt and taking out loans at the same time.
Report Post »cheezwhiz
Posted on September 20, 2010 at 2:57amWhy do the UAW-SEIU want us to buy US made goods ?
Report Post »Whatever happened to
“workers of the world unite ” ??
Aren’t we all a one big happy family of global citizens ?
The same people who have NO problem with illegals taking jobs from Americans have problems with American consumers buying goods made abroad ? Thats so totally protectionist :o
Patriotbeliever
Posted on September 20, 2010 at 4:09amYou’re thoughts are bang on. Keep up the good fight!
Report Post »Freelancer
Posted on September 20, 2010 at 8:22amBINGO CheeseDude (or Dudette) You want to see how all of the happy workers are rewarded? Government Motors will be the test case. It will be very interesting to see what happens when all of the union workers lose their jobs because of over priced, behind the curve and totally useless technology being forced upon them by the government. If it takes an $8,000 enticement from the government to purchase a glorified golf cart, nothing good can come from it. If you have some time, research the Volt and see hat you are signing up for if you buy one…. They cause more pollution per unit than a traditional car and when the battery wears out (4-7 years depending on use) you can expect a $7,000 bill for a replacement that is currently made overseas. How does this make the car even worth looking at much less buying? Imagine having to drop 7K on a new battery BEFORE you have even paid the damn car off….
Report Post »cheezwhiz
Posted on September 20, 2010 at 2:11amAny bets —saudis and other muslim “ funds” will “invest” in GM ?
Report Post »Patriotbeliever
Posted on September 20, 2010 at 4:05amPlease, we need to be civil. The auto industry will alway be in AMERICAN control. You are just invoking hatred. Please be civil.
Report Post »Psychosis
Posted on September 20, 2010 at 2:06ami will NEVER BUY A GM AGAIN
Report Post »Patriotbeliever
Posted on September 20, 2010 at 4:07amPlease, their are a lot of employees in Michigan who want to keep working. Dont say never.
Report Post »Ironmaan
Posted on September 20, 2010 at 7:04amI will never buy a GM car again. I am tired of subsidizing them with my tax dollars and I won’t subsidize them by buying an inferior vehicle. I know, I know, but what about the workers. Well, no one deserves $30 an hour to run a screw in a door panel all day. A monkey could do that. They don’t create enough value for what they are paid. The unions are like whining children demanding more all the time. Sorry GM, but I’m done now.
Report Post »Compete or Lose
Posted on September 20, 2010 at 11:04amI used to only buy GM and Ford products under the theory that I was supporting american jobs, but I feel my loyalty was betrayed by the UAW. Now I have no preference for any car company (except maybe a little for cars made in the US by non-UAW workers)–I will buy the best deal for me and if it is an import or a car made by a foreign company in a US plant, then I am all for that.
Report Post »RGS
grnhrn
Posted on September 20, 2010 at 1:56amIf I ever even think about buying a new car the only company I will look at is ford. Like the car I’m driving now
Report Post »Patriotbeliever
Posted on September 20, 2010 at 4:06amWe need to support all of the USA companies. Better to buy domestic than ANY of the other countries companys,
Report Post »e-merlin
Posted on September 20, 2010 at 4:30amYou mean “companies.” If I were to buy a car right now, not possible by the way due to income, it would be either an Audi or a Subaru. None of the traditional US builders satisfy what I want in a car.
Report Post »wingedwolf
Posted on September 20, 2010 at 8:09amLOVE my 1995 Explorer!!!! STILL on the road, only owner, still rides so smooth people forget it‘s an SUV and think they’re riding in a luxury car. Oh, and yes, it is still as much fun to drive as it was when I drove it out of the dealer’s garage! My husband keeps bugging me to go buy a new car, but I haven’t had a car payment since 2000, and totally enjoy that! It has been the lowest trouble car. Needed a tranny in 2006, got a used/rebuilt one with 400 miles on it for $800.00, replaced air conditioner fan. Other than that, couple of O2 sensors, universal joint, and my puppy in 1996-97 chewed the hell out of the seatbelts, so they had to be replaced, only regular oil change, brakes, windshield wipers, tires. Oh, and the thing thinks it’s a helicopter. I live in the woods up in the mountains of PA on dirt roads with little or snow removal. This Explorer has never been stuck. It got itself out of 3 ft. of snow in an old cemetery with a fallen tree up against the back wheels facing UPHILL! It shook & shimmied and rocked and got itself forward enough away from the tree trunk for me to get it turned away so I could back down out of the way of the trunk.I was in awe of it. That may have been why it needed the new tranny. Anyway, my neighbor has a 2007 Trailblazer, she has put more money in it this last year than I put in my Explorer in the last ten years. Go Ford!
Report Post »alshere
Posted on September 20, 2010 at 1:52amWhat about the money gov. motors was supposed to be advanced by the gov. to build a plant in Mexico?
Report Post »JJ Coolay
Posted on September 20, 2010 at 3:29amUS Gov’t needs to get their grubby little fingers out of our lives.
Report Post »Patriotbeliever
Posted on September 20, 2010 at 4:04amOur Mexican brothers deserve to work as well. However I see your point. If we dont protect jobs here, what our the alternatives?
Report Post »Ironmaan
Posted on September 20, 2010 at 7:09amOur Mexican brothers deserve to work but not because of my tax / bailout dollars.
Report Post »79USMC83
Posted on September 20, 2010 at 7:21amLMAO!! Now this is the same “Government Stupid” that RAPED the old bond holders during the bailout in favor of the EVIL SPECIAL INTEREST, “Unions” not included they are at WAR with!!!! Foreign investors BEWARE the “Government Stupid” of America cannot be TRUSTED!!!
TERM LIMITS NOW !!
FAIR TAX NOW !!
Report Post »carrera
Posted on September 20, 2010 at 9:55amGeneral Motors also applied for 14.4 BILLION dollars of additional loans from the U.S. Department of Energy’s Advanced Technology. We recently loaned 529 Million to Fisker Automotive, which funds Al Gore’s little auto manufacturer. Who can forget the propaganda commercial aired by GM stating the loans were paid off, any other manufacturer that blatantly lied to the American people would have been hauled into every attorney generals office and fined, the blood thirsty Congressional hearings would have been staggering. When our Government engages in false advertising it’s no problem though. We also now have our 4th CEO in just a year and a half, since Obama seized GM. Where the heck is the “pay czar” as they dole out millions of taxpayer funds in compensation? Our taxes are also getting consumed with numerous litigation cases against the Obama administration for seizing 789 Chrysler franchises without due process not to mention the GM franchise lawsuits. GM’s IPO is scheduled for right after the November election, literally, November 3rd. Automotive News reported that the U.S treasury wants to minimize any political fallout when they allow foreign investors to buy big stakes in our tax funded auto manufacturer. This story should be front and center for any political candidate, it is outrageous what our Federal Government is doing and we should demand repayment and cut off their spigot of tax payer loans.
Report Post »bartanton
Posted on September 20, 2010 at 11:40pmIf we had let GM fail to begin with it might already be competing fairly in the free market. As it is, I guess we are lucky to have Ford as the lone real American Car Company. Keep it up blue oval!
Report Post »Spirit-of-76
Posted on September 21, 2010 at 12:28pm@ 79USMC83 – You are right, but miss one important point. Our corrupt socialist government will protect foreign investors. It a means of redistribution. Just like they are to to the US oil inducstry; shut down our wells and use [debt] tax dollars to fund foreign oil companies.
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