GM Reports Third-Quarter Profit, IPO
GM story updated with IPO details.
DETROIT (
) --
General Motors
said Wednesday that it will post a third-quarter profit and that it has commenced an initial public offering of 365 million shares of common stock priced at $26 to $29 each.
The value of the offering of common and preferred shares could exceed $13 billion, making it one of the largest IPOs in history.
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The U.S. Treasury would sell at least 263.5 million shares, reducing its share of the company to 41% of the common stock, down from its current 61%. The 60 million shares of preferred stock would sell for $50 each; GM would retain those proceeds.
The offering would value GM at about $41 billion. That is less than
Ford
(F) - Get Report
, which has a market capitalization of about $52 billion following Wednesday's close. For taxpayers to break even on federal loans to GM, the company would have to be valued around $70 billion.
GM, which earlier said that
3.5%, said it will report net income attributable to common stockholders between $1.9 billion and $2.1 billion on revenue of $34 billion. Earnings before interest and tax will total $2.2 billion to $2.4 billion.
Additional details will follow next week, when the automaker releases its third-quarter earnings report before the bell on Nov. 10.
-- Written by Ted Reed in Charlotte, N.C.
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Ted Reed
