GM may sell preferred stock alongside IPO: report
(Reuters) - General Motors Co may sell preferred stock alongside its much expected initial public offering, Bloomberg reported, citing a draft of GM's regulatory filing and people briefed on the matter.
GM would get proceeds from the preferred offering and will not sell shares itself in the common offering, the news agency reported.
The preferred shares, which will be listed on the New York Stock Exchange, were introduced to lure hedge funds and other new investors because they have qualities of both debt and equity, according to the Bloomberg report.
GM's IPO filing has been delayed, three sources familiar with the situation told Reuters on Tuesday.
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 GM spokesman declined to comment to Bloomberg. Reuters could not reach GM outside regular U.S. business hours.
(Reporting by Anurag Kotoky in Bangalore; Editing by Dhara Ranasinghe)
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