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GM to file for IPO Friday
David Shepardson / Detroit News Washington Bureau
Washington -- General Motors Co. plans to file paperwork to launch a public offering on Friday, two people briefed on the matter said today.
The move -- first reported by CNBC -- will allow GM to begin selling shares before year's end, and will come a day after the company will report a profitable second-quarter results.
GM chairman and CEO Edward Whitacre Jr. told The Detroit News in an interview last week that GM would be solidly profitable the rest of the year. He also hinted GM would post better results in the second quarter than it did in the first quarter, when it earned $865 million.
One person briefed on the matter said GM is expected to report more than a $1 billion profit tomorrow, including strong results in North America, Brazil and China.
Whitacre said the Treasury Department will shrink its 61 percent stake to under 50 percent during the first sale -- but he said he hoped it was far more than that. The government swapped about $43 billion of its $50 billion government bailout for its majority stake in the Detroit automaker.
"We want the government out. Period," he said.
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David Shepardson / Detroit News Washington Bureau
Washington -- General Motors Co. plans to file paperwork to launch a public offering on Friday, two people briefed on the matter said today.
The move -- first reported by CNBC -- will allow GM to begin selling shares before year's end, and will come a day after the company will report a profitable second-quarter results.
GM chairman and CEO Edward Whitacre Jr. told The Detroit News in an interview last week that GM would be solidly profitable the rest of the year. He also hinted GM would post better results in the second quarter than it did in the first quarter, when it earned $865 million.
One person briefed on the matter said GM is expected to report more than a $1 billion profit tomorrow, including strong results in North America, Brazil and China.
Whitacre said the Treasury Department will shrink its 61 percent stake to under 50 percent during the first sale -- but he said he hoped it was far more than that. The government swapped about $43 billion of its $50 billion government bailout for its majority stake in the Detroit automaker.
"We want the government out. Period," he said.
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