Biz Brief: Morgan Stanley and JPMorgan Likely to Lead GM IPO

Morgan Stanley (MS) and JPMorgan Chase (JPM) are expected to win the lead underwriting roles for General Motors' initial public offering, sources told The Wall Street Journal on Friday.

GM and Treasury officials met with senior executives from nearly all of Wall Street's banks in the past month about hiring a lead underwriter. Among those also vying for the job were Goldman Sachs (GS), Bank of America (BAC) and Citigroup (C).

After General Motors filed for bankruptcy just over a year ago, the U.S. government helped it emerged from court protection with a $50 billion bailout. The government now holds a 61% stake in GM and is looking for ways to get repaid. An IPO could raise as much as $10 billion.

While it might also be one of the biggest underwriting deals of the last five years, the fees are relatively small and could fetch a total fee pool of $100 million if the valuation were $10 billion, the WSJ said.

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