General Motors (NYSE: GM) stock returned to the market today for the first time since going into bankruptcy, and the IPO is likely to the be the largest in history, valued at more than $23 billion.
The U.S. federal government sold more than 400 million shares of the company–which it bought last year to keep the automaker from collapsing–at $33 per share.
That reduces the government’s stake in the company from 61% to 33%.
According to an Associated Press story, the feds would need to sell its remaining shares for around $50 a piece in order to break even on the funds put into the company. The U.S. Treasury has agreed to hold its remaining shares for at least six months.
In early morning trading, the stock jumped to around $36 per share. Where the investor confidence is coming from is not exactly clear, however the launch of the electric Chevy Volt next month gives the company a clear green investment angle for the first time.
A GM executive on Tuesday said the company is stepping up production of the Volt to meet "huge demand."
Read the full story at the link below.
Loading...
Also the over seven billion dollars a year to subsidize bio fuels should go towards tax credits for the top five hybrids made in the USA. This would have a greater effect towards reducing our billion dollar a day foreign oil addiction and helping our severe unemployment problem.