Posted on 11/17/2010 7:27:56 PM PST by NormsRevenge
WASHINGTON (Reuters) – The U.S. government achieved its objective in the politically unpopular rescue of General Motors Co (GM.UL) and is prepared to relinquish majority ownership in the resurgent carmaker, Obama administration officials said.
The government's sale figures as part of GM's public offering released late on Wednesday show a better-than-expected initial return but taxpayers are still less than halfway from breaking even on their $50 billion investment in the company.
Treasury and White House officials said the federal stake in GM would drop from 61 percent to at minimum 37 percent through the sale of at least 358 million shares at $33 per share. Additional sales would occur at a later time.
"GM's initial public offering is an important step in the turnaround of the company and for our work to recover taxpayer dollars and exit this investment as soon as practicable," Treasury Secretary Tim Geithner said in a statement.
About two-thirds of the $50 billion extended to GM came from the Obama-led Treasury, which facilitated the automaker's bankruptcy restructuring. An earlier infusion occurred in the waning days of the Bush administration.
Massive help for heavily unionized GM as part of the government's widely unpopular corporate bailout program was severely criticized -- by Republicans, especially -- as politically motivated and largely a gift to organized labor, which helped Obama win election in 2008.
But the administration, and industry insiders, have said that GM -- known derisively as "Government Motors" -- was close to collapse and rescuing it and Chrysler Group (FIA.MI), which also received bailout and bankruptcy assistance, saved hundreds of thousands of jobs at least.
(Excerpt) Read more at news.yahoo.com ...
How come this just sounds so wrong ?
Sorry but it’s No Sale here!
Could it be that it IS so wrong!
This crap makes TeaPot Dome look like a pikers convention!
I'm sure... "at least"
And I'm 'sure' it cost thousands of thousands of jobs by having the Government meddle in a business it had no Constitutional right to involve itself, and by the diversion of tax dollars to this end...
They can attempt to sell of the stock all they want but the $17,000,000,000 that went to their UAW buds in this sleazy mess is gone forever!
LOL.. you don;t want to know.
—
GM offering may leave out many small investors
http://finance.yahoo.com/news/GM-offering-may-leave-out-apf-2266902336.html
Bernard Condon, AP Business Writer, On Wednesday November 17, 2010, 6:57 pm EST
NEW YORK (AP) — When General Motors finally offers stock to the public on Thursday, small investors will probably be left out.
Pension funds, mutual funds and other big institutions all want a piece of the rehabilitated GM. That means the three dozen banks divvying up the new shares may not have much left for individual investors.
And being left out of the initial public offering can mean being left out of some big profits: Shares of newly public companies sometimes jump 10 percent or more on the first day of trading, handing easy money to those lucky enough to get access at the offering price.
“Wall Street is only begrudgingly involving individual investors,” laments David Menlow, founder of research company IPOfinancial.com. The attitude is it’s “our ball and our rules.”
It sounds like this story I heard a chick tell in an AA meeting “I was so bad i would steal your wallet then go help you look for it”
After crash and government control, rebirth for GM
GM ready for public stock offering, ending majority government control and signaling a new era
http://finance.yahoo.com/news/After-crash-and-government-apf-3081307171.html?x=0
Sharon Silke Carty, AP Auto Writer, On Wednesday November 17, 2010, 9:08 pm EST
DETROIT (AP) — The last time General Motors threw a big party was two years ago, for its 100th birthday. Two months later, its CEO was before Congress, begging for bailout money. Now GM is getting ready for another celebration — this time for its future.
GM will be reborn as a public company Thursday with a stock offering, ending the government’s role as majority shareholder and closing a remarkable chapter in American corporate history.
The U.S. government should make about $13.6 billion when GM shares start trading on the New York Stock Exchange. The federal Treasury is unloading more than 400 million shares of GM, reducing its stake in the company from 61 percent to about 33 percent.
The IPO could wind up as the largest in history.
GM completes biggest U.S. IPO ever
http://news.yahoo.com/s/nm/us_gm_ipo
NEW YORK (Reuters) – General Motors Co (GM.UL) pulled off the biggest initial public offering in U.S. history on Wednesday, raising $20.1 billion after pricing shares at the top of the proposed range in response to huge investor demand.
GM sold 478 million common shares at $33 each, raising $15.77 billion, as well as $4.35 billion in preferred shares, more than the initially planned $4 billion.
Including an option that would allow underwriters to sell more shares, expected to be exercised in coming days, GM looks set to raise $23.1 billion, making it the biggest initial public offering ever.
Most folks I talk to won’t buy a GM car.
But just watch. The dems+ dumba will
see to it that all, if not most, govt.
agencies will be required to buy GM.
Also, their favorite companies will
follow suit. GE wants to purchase 2500
VOLTS.
No doubt about it!
They will prop it up for as long as we continue to allow it for sure!
Gee, I wonder how deep in debt they are compared to when they went bankrupt all of two years ago. And all these pension plans want their valuable stock, eh?
“How come this just sounds so wrong ?”
A) You and I know IPOs tend to have inflated prices. Chances are, it’ll drop again.
B) There’s the whole Too Big To Fail aspect. Who’s gonna pass up stock in a bet that apparently can’t lose, because the government won’t let it.
C) The government is not getting our money back now. They’re getting something to trade in later, when the price no doubt will have declined.
D) Even if the price doesn’t fall, it’ll have to go a whole lot higher to yield a profit for the government.
Until the government totally gives up its stake, then mission not accomplished. Oh, and I hear the Red Chinese stand to profit from this IPO.
Fool me once, shame on you...
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