Considering where the iconic carmaker has been in recent years, the pending IPO -- and robust investor demand for shares -- is a remarkably positive step. But GM still has plenty of problem spots that will need fixing if this historic event is to have lasting meaning.
General Motors's IPO later this month is expected to raise about $10 billion -- of between $26 and $29 per share -- and to reduce the U.S. government's stake of the company to a minority portion, the Associated Press reports.
It's not unusual for a departing chief exec to maintain some involvement with the corporation he or she led, usually by holding onto or taking a position on the company's board of directors. That can be a bad idea. Consider GM's Ed Whitacre.
The federal government's stake in banking-giant Citigroup presents a conflict of interest in General Motors' pending initial public offering, the automaker said Thursday.
The federal government's controversial decision to step in and save General Motors from insolvency was the right thing to do, says the automaker's new Chief Executive Daniel Akerson.
Akerson, who assumed the post Sept. 1, will also receive a portion of his salary in the form of stock, totaling $5.3 million, which will be paid out over three years beginning September 2011.
GM reported Wednesday that sales fell 25% year-over-year in August as the recovery appeared to stall and cautious consumers held back on buying cars. But despite the downturn, GM officials said they remain upbeat that the hard-hit auto industry will continue to improve in the months ahead.
The new incoming CEO will need to convince shareholders that GM, which is only a year out of bankruptcy and has posted just two profitable quarters, is a worthy investment. He'll also have to make sure the carmaker's dramatic turnaround is built to last.
During GM's earnings call, Whitacre announced that he'll give up his role as CEO of the country's largest automaker. Daniel Akerson, a GM board member and former chief exec at privately held XO Communications, will assume the top spot.
The latest rumors have been that GM would file an S-1 with the Securities and Exchange Commission as a preparation for an IPO. And it could be that the company is looking to raise $12 billion to $16 billion.
Three months after turning in its first profit since bankruptcy, GM is expected to report even bigger profits during the second quarter when it releases its latest results on Thursday.
GM CEO Ed Whitacre dampened hopes that the company's anticipated initial public offering would be any time soon. "We're not there yet," he told a reporter at an industry conference.
After a year-long search, General Motors finally found a buyer in the Dutch sports-car maker. The $400 million offer comprises $74 million in cash and $326 million in preferred shares. Saab workers and customers finally have a good reason to be hopeful.
