I suspect that this is not going to be the next Google:
The General Motors Company, the new automaker majority-owned by the United States Treasury, said Friday that it intended to make an initial public offering of stock by July 10, 2010, the one-year anniversary of its exit from bankruptcy. The target date range for an offering was disclosed Friday in a federal regulatory filing that the company said summarized its activities in the four weeks since it left court protection.
I’m trying to decide whether to question the timing. There’s no reason to think the General will be in much better shape this time next summer; on the other hand, if nothing goes wrong(er) and the stars line up correctly, we’re looking at about four months before the hotly-hyped 2011 Chevrolet Volt is supposed to go on sale. If the Volt proves to be the game-changer GM swears it will be, the folks who bought in for a pittance in July will turn a tidy profit in December or January.
Meanwhile, No Longer Second Deputy Under-Assistant Car Czar Ron Bloom says Chrysler won’t be doing likewise for a while:
“I don’t think Chrysler’s I.P.O. is a 2010 event,” Mr. Bloom told reporters at an automotive conference in northern Michigan. “I think it’s a little further off. But again, that will be the board’s judgment.”
Mr. Bloom referred to Mr. Obama’s directive that the government sell its stakes in the carmakers “as soon as is practicable.” He stressed, though, that unloading the 61 percent share of G.M. and 8 percent share of Chrysler would take time so as not to destroy their value.
On the other hand, an IPO would be a pretty good indication of whether those shares have any value in the first place.
(Via The Truth About Cars.)