Morgan Stanley, JPMorgan set to lead GM IPO: source

Morgan Stanley, JPMorgan set to lead GM IPO: source

Reuters) - Morgan Stanley (MS.N) and JPMorgan Chase & Co (JPM.N) are likely to be the lead underwriters in General Motors' GM.UL initial public offering, a source said on Friday, a role more attractive for its prestige than its fees.

Deals

Banks were competing fiercely to underwrite an offering that could be $10 billion to $20 billion, a person briefed on the matter said.

At that size, the deal would be the largest U.S. IPO since Visa Inc's (V.N) offering of $19.7 billion in March 2008, according to Thomson Reuters data, and one of the biggest U.S. offerings of all time.

The Treasury Department owns nearly 61 percent of the automaker's common shares after GM filed for bankruptcy last year. The automaker has since emerged from Chapter 11 protection and an IPO is a key step for GM to end its support from the government.

"The sooner they can get the government out of there the better," said Aaron Bragman, an analyst at research firm IHS Global Insight.

http://www.reuters.com/article/idUSTRE65A3PI20100611