GM readies IPO filing, in auto loan talks

By Reuters
Posted June 23, 2010 at 2:27 p.m.

General Motors Co is planning to file a statement outlining its plan for a public offering of its stock in July for a listing that could raise up to $20 billion, a person with knowledge of the preparations said Wednesday.

In addition, GM is in talks with JPMorgan Chase and Wells Fargo on deals aimed at providing improved access to consumers for auto loans at its U.S. dealerships, two people with knowledge of those talks said.
The sources were not authorized to discuss the still-confidential negotiations and asked not to be named.

GM now expects to raise $15 billion to $20 billion in its IPO, according to one of those with knowledge of the early-stage work ahead of a filing with U.S. securities regulators.

That projected range reflects stronger anticipated investor demand for the restructured automaker, the person said.

GM Chief Executive Ed Whitacre and other executives have said they favor an IPO as early as this year. Bankers had expected a stock listing to raise between $10 billion to $20 billion by selling part of the U.S. government’s 60.8 percent stake in GM to investors.

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