NEW YORK (
, China's largest automaker, is in talks to acquire about a 1% stake in
, according to a published media report.
The stake would be worth about $500 million, said the report, published Friday on
The Wall Street Journal's
Web site. The report cited an anonymous source familiar with the SAIC negotiations.
GM's initial public offering is expected next week.
The automaker is prepared to sell more than $1 billion worth of shares to sovereign wealth funds in the Middle East and Asia, giving foreign investors about 16% of the IPO's shares, the report added.
As large investors jostle for new shares of the U.S. automaker,
The IPO will mark GM's return to being a publicly traded company after it filed for bankruptcy protection in June 2009. The U.S. government, which became GM's majority shareholder and invested TARP funds in the automaker, plans to reduce its stake from 61% to about 35% after the IPO.
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This article was written by a staff member of TheStreet.