The WSJ reports that when General Motors Co. relists its stock next month, the United States will cut its ownership stake below the symbolically important 50% to about 35%.
New projects by GM indicate the company could have a stock-market value at $50 billion, which is roughly the same as the profitable Ford Motor Company (F), and that it could be as high as $60 billion. However, for the U.S. to break even on its investment, notes the Journal, GM’s share price may need to rise more than 60% from its initial level, to about $50.
The Journal also says that the IPO plan envisions the shares would be priced at $26 to $29 each, and that the actual price of the stock to be sold in the IPO would be set about Nov. 17, with the sale set to take place the following day.
Last week, GM decreased its debt to the U.S. government after returning an additional $2.1 billion, bringing the total amount it has handed back through loan repayments, interest payments and dividends to $9.5 billion.
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