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GM Completes IPO Paperwork

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On: Tue, Aug 17, 2010 at 8:58AM | By: Sherry Christiansen

 GM Completes IPO Paperwork

In automotive news, General Motors Co. has completed the long-awaited paperwork for its initial public offering (IPO) with the Securities and Exchange Commission.  The paperwork will be complete after filing with the SEC in a matter of days, according to an unidentified source who asked not to be named because the arrangements are private.

The S-1 filing is only the first stage of the process of getting GM’s IPO initiated. It could be several months before the stock is re-listed on the New York Stock Exchange or Nasdaq.

According to Automotive News; “GM updated its several-hundred page S-1 document to add a management risk factor after Chief Executive Ed Whitacre announced on Thursday he would step down and be succeeded by Dan Akerson effective September, the source said.” “The surprise announcement last week was a factor that delayed GM's IPO filing by several days, several people close to the process have said.”

Per Reuters; GM anticipates generating between $15 billion to $20 billion, which will be one of the largest IPO’s in history.  The company plans to use the proceeds to go toward the debt from the bailout last year, in which General Motors currently has $45 billion outstanding. GM will have its line of credit increased by $5 billion, according to a few sources the banks that have agreed to provide the line of credit are as follows; Bank of America Merrill Lynch, Barclays Plc, Citigroup Inc, Credit Suisse, Deutsche Bank AG, Goldman Sachs, JPMorgan Chase, Morgan Stanley, UBS AG and Royal Bank of Canada. The ten banks will also act as underwriters for the stock offering. GM will add more banks while keeping the line of credit at $5 billion in order to reduce each bank’s liability.

The most recent quarterly filing by GM listed Akerson’s appointment as CEO, as well as Chris Liddell as CFO.  "Within the past year we have substantially changed our executive management team," GM said in Monday's filing. "We have elected a new chief executive officer ... and a new chief financial officer ... both of whom have no outside automotive industry experience."


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