GM IPO filing delayed: sources

NEW YORK/DETROIT Tue Aug 17, 2010 7:40pm EDT

Chevrolet cars are seen at a GM dealership in Miami, Florida August 12, 2010. REUTERS/Carlos Barria

Chevrolet cars are seen at a GM dealership in Miami, Florida August 12, 2010.

Credit: Reuters/Carlos Barria

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General Motors IPO update

Mon, Aug 16 2010

NEW YORK/DETROIT (Reuters) - General Motors Co is unlikely to file for its initial public offering on Tuesday, three people familiar with the situation said.

Even as recently as Tuesday morning the filing had been expected on Tuesday, a fourth person with knowledge of the preparations said.

It is unclear why the delay in the much-anticipated filing emerged but the decision on when the paperwork for an IPO is filed with U.S. securities regulators now depends entirely on GM and not the underwriting banks, the three sources said.

The initial S-1 filing that GM plans to make with the U.S. Securities and Exchange Commission has been completed, they said.

Ron Bloom, the Obama appointee overseeing the government's investment in GM and Chrysler Group LLC, declined to comment on the GM IPO on Tuesday.

Bloom, who was attending an event in Cleveland, said U.S. Securities and Exchange Commission regulations barred him from discussing anything related to the expected filing.

In just over a year, the No. 1 U.S. automaker has gone from bankruptcy to the brink of a stock offering expected to be one of the largest ever.

A successful GM IPO could bolster the Obama administration's case that the bailout of GM was a justified use of taxpayer funding.

The U.S. government stepped in with a $50 billion bailout of GM and currently holds a 61 percent stake in the company.

GM's IPO is expected to be between $15 billion and $20 billion, which would make it one of the largest IPOs, globally, of all time.

Its expected debut, sometime between late October and the U.S. Thanksgiving holiday at the end of November, means that the automaker's first trades will come right around the time of U.S. midterm Congressional elections.

Government officials and GM executives have repeatedly denied any link with the elections.

GM earlier on Tuesday recalled more than 243,000 crossover utility vehicles, mainly in the United States, to inspect safety belts for possible damage.

(Reporting by Clare Baldwin and Soyoung Kim in New York and Kevin Krolicki in Detroit; Editing by Phil Berlowitz)

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Comments (5)
cynicalme wrote:
Why were the three comments here previously suddenly gone? Reuters censorship?

Aug 17, 2010 2:15am EDT  --  Report as abuse
anonymous084 wrote:
no freedom of speech here at this site

Aug 17, 2010 3:28am EDT  --  Report as abuse
Skylor wrote:
Reuters is all R’s!

The little people are getting screwed once again. How can GM be worth billions of dollars when last year they went bankrupt. Some thing is wrong with US law to allow this. If GM is worth billions then pay back its former stock holders and suppliers first!

The new GM, what a scam.

Aug 17, 2010 7:33pm EDT  --  Report as abuse
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