General Motors would like to free itself from government ownership and is aiming for an initial public offering (IPO) in the next year. Allan Edwards co-Ceo of The Markets Are Open stated "this is great news for GM, they will free themselves from the government ownership tag that has lagged sales for the last two years." Chief Executive Officer of GM Ed Whitacre agrees he stated in a recent interview "we don't like this label of government ownership," and he believes GM has lost some of its reputation because of this ownership.
Last May GM converted US government loans into a 61% equity stake in the bankruptcy reorganization and the government plans to sell those shares on the open market to recoup there money. "But the government lent GM nearly 50 billion in loans, so they stand to lose the most," snickered Edwards.
Whitacre states Q2 results will be "solid," but remains cautious on giving a date to when when GM will IPO. Edwards finished "GM still has many months before it will IPO but I am chomping at the bit to get my hands on some of those delicious shares."
It remains to be seen how Ford will be impacted by the IPO but the stock has struggled of late in anticipation of the GM IPO.
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