Options Wonderland

[3xBuBu]

General Motors Co. is expected to file registration papers for an initial public offering later Wednesday, laying the groundwork for the auto maker to begin cutting its ties to the U.S. government, its majority owner.
An IPO will allow the U.S. Treasury to begin offloading the 61% stake it holds in GM after last year's $50 billion government bailout of the company. Selling preferred shares could allow the Treasury to more quickly reduce its stake in the company.

Preferred shares behave more like bonds than stock in the financial markets and may attract different types of investors.

The move to offer preferred shares was reported earlier by Bloomberg News.

GM will attempt to raise in excess of $10 billion through the stock sale, with a target potentially nearing $20 billion, according to people familiar with the situation. An expected price range for the shares will be determined closer to the sale.
http://online.wsj.com/article/SB10001424052748703649004575437351219441406.html?mod=djemalertMARKET