It will be a wonder if the stock market remains favorable to an IPO of this size by October.
ABC News
GM IPO Filing Delayed Until Early Next Week
By Soyoung Kim
August 13, 2010
NEW YORK (Reuters) - General Motors Co has delayed its IPO filing until early next week as it updates its prospectus with the recent CEO change and a management risk factor, a source familiar with the situation said on Friday.
The filing with the U.S. Securities and Exchange Commission was originally scheduled for Friday, sources said previously.
GM Chief Executive Ed Whitacre said on Thursday he would step down and Dan Akerson would take over, effective in September.
The source who said the filing had been delayed declined to be named because preparations for the IPO are not public.
GM's several-hundred-page prospectus will not provide the number of shares to be sold or the pricing range. It will cite the company's bankruptcy, steps completed in restructuring, financial projections, details of ownership, and a large set of risk factors, sources have said.
GM is now adding a new risk factor regarding the departure of Whitacre and increased uncertainty about the automaker's long-term leadership and the change is expected to take more than a day, the source said.
By filing initial paperwork with the SEC next week, GM is aiming to complete its IPO between late October and the U.S. Thanksgiving holiday, another source familiar with the matter said.
A successful GM IPO, which could be the largest ever for the U.S. market, would hand the Obama administration an important political win against critics of its controversial $50 billion bailout of the top U.S. automaker, analysts have said.
The automaker secured a $5 billion credit facility this week, two sources briefed on the deal told Reuters on Wednesday, clearing the last remaining hurdle toward an initial public offering of stock expected to make the U.S. government a minority shareholder.
Ten major banks have signed on to the $5 billion credit facility, committing up to $500 million each, but the individual commitments would be cut as GM adds more banks in other countries and emerging markets as part of its efforts to attract global investors, sources said...
