Report: U.S. hires lead bank for General Motors IPO

Filed under: Government/Legal, GM, Earnings/Financials

The government the United States may be actively avoiding any direct involvement in the day-to-day management General Motors, that doesn’t mean it won’t have say when the time comes for the automaker to go public again. According to The Detroit News, the U.S. Department the Treasury has hired investment bank Lazard Frères &amp Co. provide it with advice the initial public offering process.

While both General Motors and Treasury would obviously both like latter unload majority stake it owns automaker as soon as possible, that process needs done carefully. Political and public perception considerations point an early IPO, that may not smartest thing do business perspective. Selling before its clear that GM’s recovery well underway could lead getting too low share price. The bank will reportedly also look at other options disposing 61 percent shareholding.

According to the report, Lazard Frères & Co. will get paid $500,000 month for the first year $250,000 per month after that the sale hasn’t yet been completed. Estimates from various sources that the treasury will face losses of $25-30 billion on the bailouts of GM, Chrysler GMAC.

[Source: The Detroit News | Image: Stan Honda/Getty]

Report: U.S. hires lead bank General Motors IPO originally appeared on Autoblog Mon, 31 May 2010 11:01:00 EST. Please see our terms use feeds.

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