Whitacre Seeks ‘Bigger, Bolder’ GM IPO as 32 Offerings Shelved
Ed Whitacre has General Motors Co. in better shape now than it’s been in years, but pushing ahead with an initial public offering this year may be tougher to manage, Bloomberg reported.
Bonds that convert into GM shares fell at the end of last week to their lowest level since Feb. 26. GM, which earned $865 million in the first quarter, is still losing money at its European unit. Chief Executive Officer Whitacre has less than four months to meet a goal of setting up a lending division. The IPO market has stumbled, with 32 deals pulled since April.
Whitacre has said he’d like to begin selling shares as soon as possible. The former AT&T Inc. chairman will need to balance his natural inclination to seek a big IPO against the need to make it successful for the government, which owns 61 percent of the automaker, said James Kahan, a former AT&T executive.
The Obama administration needs GM to go public to reduce its 61 percent stake and harvest returns on its $50 billion investment. Morgan Stanley and JPMorgan Chase & Co. are expected to lead the initial sale, people familiar with the matter said last week, and a June selection means Detroit-based GM may be able to sell shares in the fourth quarter.
Selim Bingol, a GM spokesman, declined to comment.
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