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Sources: GM nears terms for initial public offer
Sources: GM nears terms for initial public offering; shares could sell between $26 to $29 each

Tom Krisher and Sharon Silke Carty, AP Auto Writers, On Monday November 1, 2010, 6:08 pm EDT

DETROIT (AP) -- General Motors Co. stock should sell between $26 and $29 per share in an initial public offering that could happen in mid-November, two people briefed on the matter said Monday.

The people said the U.S. government is expected to reduce its stake in the automaker from 61 percent to around 43 percent in the sale.

Terms of the sale are not final because GM's board has yet to approve them, although it has accepted the general outline, another person said.

Bankers leading the sale are recommending that the final share price be revealed Nov. 17 and the sale take place on Nov. 18, according to the people.

A price range could be formally announced in a regulatory filing within the next 48 hours, two of the people said.

None of the people wanted to be identified because they had not been authorized to speak on the matter.

A "road show" to woo investors to buy shares of the company could begin as early as Wednesday. It generally will be aimed at hedge, pension and mutual funds, but presentations are expected for individual investors.

The historic sale would return GM to the New York Stock Exchange, where it was a symbol of American industrial might for more than 92 years before being booted off last year as financial troubles sent it into a government-funded bankruptcy.

GM is now a private company that's owned by the U.S. government, a United Auto Workers health care trust, the Canadian and Ontario governments and former GM bondholders.

The four owners hold about 500 million shares total, and the U.S. government's stake is about 304 million.

To bring the share price down, more shares will be issued, a move called a split that likely would give the owners three or four shares for every one they currently hold.

U.S. taxpayers became GM's biggest shareholder when they gave the automaker $50 billion to survive bankruptcy restructuring and emerge as a smaller company with far less debt.


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