Why Is GM Courting Foreign Investors For Stock Sale?

Investment bankers for General Motors Co. have met with sovereign wealth funds and private investors in the Middle East and Asia to gauge interest in the automaker’s planned stock sale, said two people familiar with the meetings.

GM’s bankers had planned to approach Riyadh, Saudi Arabia- based Kingdom Holding Co., Abu Dhabi-based Mubadala Development Co., Qatar Holdings LLC and Singapore-based Temasek Holdings Pte. about GM’s initial public offering, said one of the people, who asked not to be named because the discussions are private.

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theman440 - 10/6/2010 3:36:37 PM

+6 Boost

Ditto

sdcarguy - 10/6/2010 2:36:01 PM

+7 Boost

They still have money to invest.

Agent009 - 10/6/2010 4:04:07 PM

-1 Boost

But they also see what GM has to offer first hand as well. They obviously feel that the US investor is wary of spending money on them.

0to60 - 10/6/2010 4:08:46 PM

+3 Boost

I would buy GM stock but I would treat it like penny stock. Are they trading again yet?

Steve - 10/6/2010 5:00:41 PM

+5 Boost

Americans are feeling "fool me once, shame on you, fool me twice, then shame on me," while foreign investors are emotionally detached from the GM brand and its stock. I say let the chips fall as they will: The stock will trade at a level where buyer and seller agree to trade. And after the IPO, it may well do the post-IPO tail-spin dance, as many stocks do when optimism meets reality.

So far, it appears to me the only people who have benefited from the bail-out are GM execs who got big fat bonuses, GM and peripheral laborers who are still employed (for the time being), and auto unions who are still collecting dues. GM shareholders are hurting, and will hurt more as new shares dilute and devalue those already held. Tax-payers are hurting because the government shifted GM's debt to tax-payers' shoulders. And I am seeing precious few consumers dancing in the streets singing "thank God I can still buy GM products now, and for years to come!" Well, none actually.

upwards - 10/7/2010 1:09:45 AM

-2 Boost

sportsbike80... Just stop it with all the lies

1. There was a Hummer buyer but the Chinese government blocked it.
2. Opel was never for sale only under consideration.

Dont be stupid a international company with very little debt offering an IPO will be a hot buy for investors. If you have READ the article it will tell you Daimler and Volkswagen have already done the same.

g2ok - 10/6/2010 6:47:54 PM

+4 Boost

I think it gives the board good cover to move more assembly overseas.
It's all about manipulation and deceit and they really couldn't care about the product or customer that buys them.

izfuney - 10/6/2010 7:15:07 PM

+1 Boost

GM needs a buy in from a couple of good anchor investors, be that Sovereign funds or big US funds. Every big IPO needs that. GM itself in a consumer goods bracket that is not in a high growth sector and has an average P/E of 10. So a couple of long term anchor investors are needed to buoy confidence in the IPO and hold the base price..

As for GM's future .... there are a lot of question marks.. how the financial markets respond is when they have their first bond float ..