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.READ MORE: Michigan Matters: Helping Young Folks & Cancer Patients
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.READ MORE: Meet These Two Bear Cubs Who Have Become Inseparable At The Detroit Zoo
GM has yet to set a specific date or establish a price for the stock offering.MORE NEWS: Delta Wants Other Airlines To Share ‘No-Fly’ Lists To Help Stop Unruly Passengers
(Copyright 2010 WWJ Newsradio 950. All Rights Reserved. The Wall Street Journal Contributed To This Story)