'New' GM Could Make IPO in 2010, Wilson Says

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Kathryn Elizabeth Tuggle

FOXBusiness A newly-formed General Motors entity could make an initial public offering in 2010 according to testimony from auto task force member Harry Wilson in U.S. bankruptcy court on Wednesday.

GM is currently seeking approval to sell its assets to a “new GM” that is currently backed by the government. If the deal wins approval, GM will be allowed to sell its strongest assets including its Cadillac and Chevy brands.

During Wilson’s testimony, he confirmed that the only way to save GM is through an asset sale to the “New GM.” But there is one catch to the sale: it must close by July 10, when the government--imposed deadline runs out and Uncle Sam $30 billion in financing to help the beleaguered auto maker.

"We cannot make an open-ended commitment," Wilson said in court of the looming deadline. "At one point, it's better to cut one's losses… We have no intention to further fund this company if the sale order is not entered by July 10.”

GM filed for Chapter 11 bankruptcy four weeks ago and is in its third day of hearings under Judge Robert Gerber to approve the asset sale. On Tuesday, the court ruled that CEO Fritz Henderson will remain head of the new GM.

During his testimony, Wilson said that GM has received around $10 billion in funding since it filed for bankruptcy. The U.S. Treasury would offer an additional $60 billion in financing to the “New GM,” which would give the government a 60% stake in the new company. Additionally, the United Auto Workers Union hold 17.5%, Canada would own 12%, and GM bondholders would own 10%.

http://www.foxbusiness.com/story/mar...est=latestnews

[dindak]

I would probably buy shares in a new GM. With a clean slate and growth in Asia it would probably be a decent investment.

[FenwickHockey65]

I have a few thousand to invest on new GM stock.

['Vette Dude]

Task Force Advisor Sees IPO on GM Stock in 2010

[Rocket 88]

Originally Posted by dindak

I would probably buy shares in a new GM. With a clean slate and growth in Asia it would probably be a decent investment.

Just my opinion, but your probably better off investing it in the charity of your choice and hope to get paid back in Karma. GM is an eternal money pit until it proves otherwise.

[AndrewGS]

Originally Posted by Rocket 88

Just my opinion, but your probably better off investing it in the charity of your choice and hope to get paid back in Karma. GM is an eternal money pit until it proves otherwise.

[vcs2600]

The obvious political angle here is to get GM off the government's books by the 2010 midterm elections.

[SNO]

During his testimony, Wilson said that GM has received around $10 billion in funding since it filed for bankruptcy. The U.S. Treasury would offer an additional $60 billion in financing to the “New GM,”

Is my memory bad or are these numbers growing? And does this include the ~$20B provided in pre-bankruptcy funding?

[Greg Burr]

When the government and the unions have no ownership in GM, and when the company is in American hands, I will consider buying a GM car. Until then, forget it.

[kenman923]

If I have any money left after paying for the energy bill and health care plan, I will invest that money in "New GM" stock.

[dindak]

Originally Posted by Rocket 88

Just my opinion, but your probably better off investing it in the charity of your choice and hope to get paid back in Karma. GM is an eternal money pit until it proves otherwise.

I would never have bought old GM shares but buying in as car sales slowly recover from an automaker that is probably slimmer than Toyota after this chapter 11 will probably be profitable if the shares are not overpriced.

One thing I have learned about investing over the years is the past does not dictate the future.

[Rocket 88]

Originally Posted by dindak

One thing I have learned about investing over the years is the past does not dictate the future.

Ain't that the truth!

All I'm saying is I would like to see some evidence of a new GM corprate culture, proof of real branding and some changes in company philosophy.

A fresh start is nice, but if the same cast is running the show... it could have another bad ending.

[appman85]

Originally Posted by Greg Burr

When the government and the unions have no ownership in GM, and when the company is in American hands, I will consider buying a GM car. Until then, forget it.

You weren't buying one anyways.

[tgagneguam]

Originally Posted by kenman923

If I have any money left after paying for the energy bill and health care plan, I will invest that money in "New GM" stock.

Ain't that the truth!

[donbanjo]

Just wanna make a suggestion for GM after it emerges from bancruptcy Kindly retire the name GM and make it GMC so that the new company name will have a brand of its own and at the same time its the true abbreviation for General Motors Corporation or Government Motors Corporation and finally, GMC kindly introduced your first sports sedan to AWD with MT 7 speed and probably big bike with TOUGH ALL ROUNDER IMAGE go GMC!
Thanks