GM Mulls Sale of Preferred Stock - Report
DETROIT (
) --
General Motors
TST Recommends
may sell preferred stock alongside its
of common shares,
Bloomberg
reports, citing a draft of the automaker's regulatory filing and two people briefed on the plan.
GM would get proceeds from the preferred offering and won't sell shares itself in the common offering, according to the draft and the people,
Bloomberg
reports.
The preferred shares were added to attract hedge funds and other new investors because the shares have attributes of both debt and equity, people familiar with the plans told
Bloomberg
.
GM reportedly will seek to raise between $12 billion to $16 billion in the IPO.
The U.S. Treasury will sell some of the shares it holds in the company, the people told
Bloomberg
. GM is 61%-owned by the U.S. government.
The IPO could be filed Wednesday with the
Securities and Exchange Commission
. The IPO was originally expected to be launched last Friday, but it was held up because it was announced
Dan Akerson would succeed Ed Whitacre as CEO
and the automaker's statement that it posted a $1.3 billion profit.
-- Written by Joseph Woelfel in New York.
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