GM Seen Selling $10B In Common Stock; IPO Will Thrust U.S. Government Into A Minority Position

SAN FRANCISCO (MarketWatch) — General Motors Co. is reportedly looking to sell $10 billion in common stock when it launches its initial public offering, which is expected to take place later this month.

The sale, along with $3 billion in preferred stock, would turn the U.S. government into a minority shareholder of the Detroit car maker, according to a report from Reuters on Monday that cited people familiar with the matter.

Now, GM /quotes/comstock/13*!gm (GM 0.00, 0.00, 0.00%) is planning to sell 365 million common shares for $26 to $29 a share, and will detail the changes in an updated prospectus with the Securities and Exchange Commission to be made public Tuesday.

The sale will likely include a stake of up to $2 billion for four or five sovereign-wealth funds, Reuters reported. The IPO will allow the U.S. Treasury to pare its 61% stake down to 43.3%.

The filing follows closely on the heels of GM’s move to bolster its finances by repaying $2.1 billion to U.S. taxpayers and making early payments to pension and retiree health plans.

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http://www.marketwatch.com/story/gm-reportedly-set-to-sell-10-billion-in-stock-2010-11-01?dist=afterbell

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