M.Stanley, JPMorgan could make $40 mln each from GM's IPO:report

Thu Nov 18, 2010 2:31pm EST

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(Reuters) - Total underwriting fees for the initial public offering of General Motors Co could reach about $248 million, largely benefitting the lead bankers including JPMorgan Chase and Morgan Stanley, the Wall Street Journal said.

Morgan Stanley and JPMorgan could each take home about $40 million in fees from GM's IPO, the Journal said, citing a person familiar with the matter.

The group of underwriters will split about $165 million, or 0.75 percent of the proceeds, with a higher fee of about 2 percent being paid by General Motors for the $5 billion in convertible shares being raised, the Journal said.

Morgan Stanley, JPMorgan, Bank of America and Citi are listed as lead underwriters on the offering.

Barclays Capital, Deutsche Bank, Goldman Sachs, Credit Suisse and Royal Bank of Canada are the other major underwriters of the deal.

Morgan Stanley and JPMorgan could not immediately be reached for comment by Reuters outside regular U.S. business hours. (Reporting by Sakthi Prasad in Bangalore; Editing by Muralikumar Anantharaman)

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Comments (1)
puzzled wrote:
I am shocked as to how GM conducted this IPO altogether. Rather than handling this through a dutch auction they actually hired the very same banks that are earning hundreds of millions in fees for the debt they raised for the company in the first place. Rather than paying these monkeys that got this country into this mess, they should have paid a dividend to shareholders for the amount of fees being charged by the banks. Thats a fair return to taxpayers. Instead, they pay the same corrupt group that has ruined this country for their personal gain. Again I ask, where is congress in not stepping in and saying the banks must eat their fees

Nov 18, 2010 3:36pm EST  --  Report as abuse
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