General Motors is expected to file papers to begin the process of selling stock to the public as soon as Wednesday. The filing will include a plan to sell preferred as well as common shares, The Wall Street Journal reported, citing sources familiar with the matter.

The stock offering would allow the U.S. government to unload its 61% stake in the auto giant after last year's $50 billion government bailout. Both GM and the government are eager to relieve the automaker of its government-owned status.

The decision to offer preferred as well as common stock would allow Treasury to unload its shares of stock more quickly, the Journal reported. The move to offer preferred shares was reported earlier by Bloomberg News.

The filing with the Securities and Exchange Commission will outline GM's business plan, including risks to the company, and include detailed financial statements. The stock sale would occur later this year.

The registration statement, known as an S-1, was expected as early as last Friday, but is believed to have been delayed by the announcement last week by GM CEO and Chairman Edward Whitacre that he will be stepping down from those posts as soon as Sept. 1. News outlets reported GM needed additional time to tweak the filing to include language that addresses any risks associated with Whitacre's departure.




Increase your money and finance knowledge from home

Finding Stock Ideas

Learn to do your research and find investments.

View Course »

What is Short Selling?

Make a profit when stocks prices fall.

View Course »

Add a Comment

*0 / 3000 Character Maximum

3 Comments

Filter by:
billandbarbaras

What has happened to the GM shareholders stock value previously owned before the bankruptcy?

August 18 2010 at 9:55 PM Report abuse rate up rate down Reply
Mr Don Corn

Senator Bob Corker (R-Tenn.)is probably holding his breath as GM hopefully begins to off load shares of it's stock to the U. S. Government and general public. Remember Corker, he's the Senate Banking star who treated GM. Chrysler and the UAW like red headed step children when they appeared before the committee requesting a loan to stay afloat. Corker wanted the auto executives to file for bankruptcy thus turning America's auto industry over to Japan.

August 18 2010 at 3:55 PM Report abuse -1 rate up rate down Reply
Gumby

UAW will be jumping with joy once GM is back in the stock market. UAW will get its right to strike back from the government. Under Government Motors, UAW is forbidden from striking and UAW cant strike Ford Motors based on pattern contract. GM is not a good stock bet since the government is anxious to unload GM ownership. I am all for saving GM as long as it is called Government Motors until it repays all of the bail out money first then I will see whether GM is worth the stock it represent much later on. GM is acting like Tom Sawyer having his pals paying him to have the privilege to paint the fence for him.

August 18 2010 at 3:43 PM Report abuse -1 rate up rate down Reply