BlackRock's stock price fell sharply on Wednesday morning after the global investment management firm confirmed that Bank of America and PNC Financial Services would sell 42 million of its shares in a secondary offering.
Auto giant General Motors is expected to file for its IPO as soon as Wednesday. The filing is likely to include preferred as well as common shares and will help the government unload its 61% stake in the carmaker.
Goldman Sachs' big discount in underwriting fees for the GM IPO has squeezed the other underwriters in the deal. The banks now stand to make only a fraction of what they would normally rake in for the stock offering.
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.
