GM Reserves 5% of IPO Stock for Employees

More than 600,000 U.S. and Canadian employees and retirees are eligible to participate in the direct stock purchase plan.

Employees, retirees and dealers are being offered the chance to buy reserved shares of GM stock at the public offering price during the company's initial public offering, GM said on Oct. 14.

The IPO, which will be a turning point in the crisis that forced the manufacturer to declare bankruptcy in 2009, is expected in November.

Any reserved shares not purchased will be offered to the general public, the filing said.

GM chairman Edward Whitacre predicted the upcoming GM initial stock offering will be priced between $20 and $25 per share. "It will be something like that," Whitacre said at an event in San Antonio, the San Antonio Express-News reported. "It's what everyone is guessing. It's too early to say."

More than 600,000 U.S. and Canadian employees and retirees are eligible to participate in the direct stock purchase plan, the company said earlier this week. The minimum investment for employees and retirees is $1,000 said a GM official.

No details have been made available about the date of the stock offering, the number of shares to be offered or their prices, but the IPO could be among the largest of its kind in US history. The Treasury Department has said it will take place in the fourth quarter, and industry experts expect it will come after the November 2 mid-term elections.

The Treasury is expected to sell only a small part of the 304 million shares it obtained when it rescued the company.

GM chief executive Dan Akerson said last month that it could take a "couple of years" to repay the U.S. government's $50 billion investment that allowed the auto giant to emerge from bankruptcy.

Copyright Agence France-Presse, 2010

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