No GM Public Offering Before October

June 11, 2010
Treasury said the IPO, if it occurs, likely would include the sale of shares owned by Treasury, GM and other shareholders.

The U.S. Treasury Department said Thursday there would be no initial public offering of government-rescued automaker General Motors before October.

"Exact timing of the offering will be determined by GM in light of market conditions and other factors, but will not occur before the fourth quarter of this year," the Treasury said in a statement.

"Treasury will retain the right, at all times, to decide whether and at what level to participate in the offering, should it occur."

The Treasury provided about $50 billion in financing to GM and owns 60.8% of the common stock after the leading U.S. automaker emerged from a government-supported bankruptcy reorganization a year ago.

The initial public offering will be "a significant step" in carrying out Treasury's previously announced intention of disposing of its investments under the $700 billion Troubled Asset Relief Program, the department said.

The Treasury said the IPO was expected to include the sale of shares owned by Treasury, GM and other shareholders.

Canada, which extended $9.1 billion in loans as part of the bailout, has an 11.7% stake in GM and a United Auto Workers union retiree healthcare trust fund holds 17.5%.

Last month, GM reported a post-bankruptcy quarterly profit for the first time in three years on the back of a jump in sales and cost-cutting measures.

GM entered a government-backed bankruptcy reorganization on June 1, 2009, with liabilities of $172.8 billion.

The company emerged from bankruptcy protection on July 10 with $48.4 billion in debt.

Copyright Agence France-Presse, 2010

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