GM to File for IPO in August
NEW YORK (TheStreet) -- GM is planning to file for an IPO during the week of Aug. 16, according a Reuters report.
Two Reuters sources say that the IPO registration papers will be filed right after the company reports second-quarter earnings, which falls in the week of Aug. 16.
The sources indicate that GM wants to complete the IPO before the U.S. mid-term elections in November.
On Thursday, GM announced that it had agreed to acquire subprime lender AmeriCredit (ACF) in an all-cash transaction valued at about $3.5 billion.GM said it entered the deal in order to meet customer demand for leasing and non-prime financing for GM vehicles, though some are wondering whether the deal is appropriate, given AmeriCredit's spotted history with subprime lending. whether the deal is appropriate CRT Capital analyst Kirk Ludtke believes that the transaction will likely be completed, given that the "new" GM appears to be paying a full price for AmeriCredit; another likely bidder is unlikely and the transaction appears to face relatively low regulatory hurdles. The transaction is expected to close by the end of the fourth quarter of 2010. AmeriCredit stock is trading at $23.91 at the opening bell.
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