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G.M. Offering Price Range Rises to $32 to $33 [IPO]
DealBook NYTimes ^ | 11/15/2010 | MICHAEL J. DE LA MERCED AND NICK BUNKLEY

Posted on 11/15/2010 2:47:41 PM PST by fight_truth_decay

4:47 p.m. | Updated General Motors is looking to price shares in its initial public offering to $32 to $33, higher than the previously estimated price range of $26 to $29, people close to the matter tell DealBook.

The size of the common stock offering will remain the same, meaning that G.M. could raise more than $11.8 billion at the midpoint of the new price range. The company is also expected to raise the amount of money it expects to raise from selling preferred shares to about $4 billion from $3 billion, one of these people added.

The decision to move the price range up was made on Monday afternoon, this person said, and the changes could be disclosed in a regulatory filing as soon as Tuesday morning. Books for the offering are set to close Tuesday afternoon, and G.M. shares will be priced on Wednesday.

(Excerpt) Read more at dealbook.nytimes.com ...


TOPICS: Business/Economy; Extended News; Government; News/Current Events
KEYWORDS: generalmotors; gm; governmentmotors; ipo
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1 posted on 11/15/2010 2:47:54 PM PST by fight_truth_decay
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To: fight_truth_decay

Anyone who buys into this is a fool and will lose his/her money.


2 posted on 11/15/2010 2:50:07 PM PST by DownInFlames
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To: fight_truth_decay

Yes, by all means, piss away a bunch of money on a ‘stock’ issued froma company that sold out its prime bond holders, surrendered it to Obama and the UAW health plan, AND WILL DO SO AGAIN IN A NEW YORK MINUTE when they piss away what you paid for their worthless bonds.....yes, by all means...


3 posted on 11/15/2010 2:50:13 PM PST by Gaffer
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To: fight_truth_decay

Anyone who buys into this is a fool and will lose his/her money.


4 posted on 11/15/2010 2:50:18 PM PST by DownInFlames
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To: fight_truth_decay

Not even with the decimal point moved two places to the left.


5 posted on 11/15/2010 2:51:51 PM PST by I cannot think of a name
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To: I cannot think of a name

I’ve seen a couple of (very!) independent analyses that peg the proper share price for a GM IPO at between $1.60 and $2.05...and that’s WITH some rather generous assumptions about debt restructuring, contract concessions and future auto sales.


6 posted on 11/15/2010 2:53:48 PM PST by SAJ (Zerobama -- a phony and a prick, therefore a dildo.)
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To: fight_truth_decay

A great confluence between two trains of thought: (i) there’s a sucker born every minute, and (ii) there is no way that GM and the UAW are going to be cut loose from the federal teat anytime soon.

Notice how NOTHING is every said about Chrysler? An even more hopeless government motor - GM is being used as the poster child for the “success” of the bailouts. No problem - just us taxpayers who are stuck.


7 posted on 11/15/2010 2:54:06 PM PST by rockvillem
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To: fight_truth_decay

8 posted on 11/15/2010 2:54:30 PM PST by jimbo123
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To: fight_truth_decay
I still think we'll see a bubble in this due to speculators but it will pop quickly.
9 posted on 11/15/2010 2:56:39 PM PST by Hillarys Gate Cult
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To: SAJ

“proper share price for a GM IPO”

What will be the “proper” price in three years when they need another bailout and hopefully there is no congress stupid enough to do it?

When they take the full blown Chapter 7 that should have happened last year, I believe the “proper” price will be -zilch!


10 posted on 11/15/2010 2:59:06 PM PST by I cannot think of a name
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To: DownInFlames

Don’t buy now, wait a month or so until it hits the penny stock list.


11 posted on 11/15/2010 2:59:20 PM PST by Iron Munro (Save The USA . Stamp out Affirmative Action: Get the Obamas out of the White House.)
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To: DownInFlames
Completely wrong, too. Ford played by the rules are getting screwed.

Doubt that there will be any long term investors. Just those who want to make a get in-get out quick buck. And, there may be a panic sell off if it appears that the stock is tanking. Certainly not a long term investment.

12 posted on 11/15/2010 3:04:48 PM PST by dhs12345
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To: Iron Munro

hey I remember when lehman brothers hit the penny stock range. I think I made twenty bucks screwing with it.


13 posted on 11/15/2010 3:05:15 PM PST by utherdoul
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To: fight_truth_decay

Given GM’s inept management and corrupt unions, shouldn’t the stock price be 32 or 33 cents - not dollars?


14 posted on 11/15/2010 3:07:46 PM PST by Da Coyote
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To: fight_truth_decay
"S_ort the _ell out of GM"

Is there an 'H' please?


Frowning takes 68 muscles.
Smiling takes 6.
Pulling this trigger takes 2.
I'm lazy.

15 posted on 11/15/2010 3:08:22 PM PST by The Comedian (I enjoy progressives, especially in a light cream sauce.)
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To: SAJ

“(Zerobama — a phony and a prick, therefore a dildo.) “

D*mn, that’s brilliant.


16 posted on 11/15/2010 3:10:14 PM PST by Da Coyote
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To: The Comedian

And Soros is heavily into Monsanto, as reported on Bloomberg totdy.


17 posted on 11/15/2010 3:11:06 PM PST by IM2MAD
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To: SAJ

No can accurately price this since GM admits in the prospectus you can’t trust their books.


18 posted on 11/15/2010 3:11:20 PM PST by DManA
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To: fight_truth_decay

No one will buy it, so the Fed will, and call it “Quantitative Investing”.


19 posted on 11/15/2010 3:13:19 PM PST by Defiant (I'm a Fabian Constitutionalist. Roll back FDR and progressivism!)
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To: SAJ
GM [owned by majority taxpayers] was reported to have to be worth about $70 billion for Uncle Sam to break even.

'Sources' familiar with the upcoming IPO say there are orders for 60-billion-dollars worth of common GM stock.

Probable buyers include GM's Chinese automaker partner SAIC and investment funds from the Middle East. That could create controversy for the IPO's largest seller, the U.S. Treasury, which is planning to use the sale to lower its stake in GM from 60.8% to slightly more than 40%. The treasury has said that some foreign investors would be allowed, but consumer advocate and former presidential candidate Ralph Nader cosigned a letter last week to President Barack Obama, urging him to suspend the IPO, partially because of the need to keep investment in the U.S. Nader was also concerned that the government plans to sell part of its stake at a loss. The government needs to average $43.67 per share to break even on its $50-billion investment in GM, above the likely range. The treasury is hoping GM's stock will grow in value over the coming months and years so it can make more money when it sells the rest of its shares.

Sources say..........

20 posted on 11/15/2010 3:20:17 PM PST by fight_truth_decay
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