GM's IPO set to draw attention
- Source: Shanghai Daily
- [08:53 September 21 2010]
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General Motors Co's Chinese partner SAIC said September 20 that it is paying attention to GM's upcoming stock sale, but did not say if it plans to take a stake itself.
GM executives in the United States and China refused comment on reports that the auto maker is in talks with its joint venture partner Shanghai Automotive Industry Corp about buying a stake in the company via its initial public offering.
But a US Treasury Department statement said investors in GM would be sought across "multiple geographies," with a focus on North America.
"Shanghai Automotive is watching GM's progress closely. As a strategic partner of GM, SAIC-GM hopes for a successful IPO," SAIC said in an e-mailed statement.
Its staff would not comment further.
Foreign investment in US auto makers 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 in cities outside the US.
The US Treasury lent 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 US government hopes to get the remaining $43 billion back with stock sales that could start in mid-November.
GM has been allied with SAIC since its debut on the Chinese mainland. Their first joint venture Buick factory opened in Shanghai in 1998.
In December, the they announced plans for a venture to sell vehicles in India. In that deal, SAIC, China's biggest auto maker, committed $350 million to the India venture, and GM would turn over 1 percent of Shanghai GM, their main joint venture, giving SAIC a controlling 51 percent of the company.
