SAIC sounds out GM over IPO stake
- Source: Global Times
- [09:03 September 19 2010]
- Comments
China's top automaker Shanghai Automotive Industry Corp (SAIC) has reached out to General Motors to explore the prospect of taking a stake in the automaker when it goes public this fall, four people with knowledge of the matter said.
The 13-year relationship between SAIC and GM has been informal and the expression of interest by the Chinese automaker could hit a quick dead-end if the US government objects to the move, several of the sources said.
In its informal contact with GM, SAIC has expressed an interest in acquiring a "single digit" share in GM, one person with knowledge of the discussion said.
Because the SAIC contact with GM remains private and preparations for GM's IPO are covered by strict US securities regulations regarding disclosure, none of the sources agreed to be named.
A spokesman for the US Treasury declined to comment on discussions about who might buy shares in the IPO, but the US Treasury late Friday clarified for the first time the rules that will be applied to the GM IPO.
An online Treasury posting stated that the IPO would be open to a wide range of investors including overseas funds and US retail buyers.
A GM spokesman could not be reached for comment and has repeatedly declined to com-ment on the IPO, citing securities regulations.
Reuters
