Sept 3 The U.S. Treasury is concerned about how
many foreign investors it should allow to buy big stakes in
General Motors Co's [GM.UL] proposed initial public offering,
the Wall Street Journal said.
The Treasury is cautious because it is looking to minimise
any political fallout from the IPO, the Journal said, citing
people familiar with the matter.
The Treasury may decide which of the non-U.S. investors,
such as sovereign wealth funds, should be invited to be
"cornerstone" investors, the people told the Journal.
Cornerstone investors are selected to commit to buying and
holding a large stake at a set share price as a show of
confidence intended to draw in other investors.
General Motors took a big step toward repaying a
controversial taxpayer-funded bailout by declaring plans for a
landmark stock offering that represents a critical test for the
Obama administration. [ID:nN18118235]
The U.S. government currently owns almost 61 percent of GM
after converting $43 billion of the $50 billion in funding to
the automaker into equity.
The U.S. Treasury could not immediately be reached for
comment by Reuters outside regular U.S. business hours.
(Reporting by Sakthi Prasad in Bangalore; Editing by David