WSJ: GM Plans IPO "Road Show"
As General Motors plans its Initial Public Offering of stock and readies its road show for the sale next week, there’s word that some bankers and analysts feel shares could reach a high enough price for the U.S. government to come close to breaking even on its investment.
According to Thursday’s Wall Street Journal, there is one big caveat, however; the stock would have to remain at an inflated price for months, perhaps years, before the government would be able to sell its majority stake in the auto company.
The Journal says the Treasury Department is under pressure from banks underwriting the deal to maximize the number of shares it sells in the IPO.
GM has yet to set a specific date or establish a price for the stock offering.
(Copyright 2010 WWJ Newsradio 950. All Rights Reserved. The Wall Street Journal Contributed To This Story)