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Treasury says GM still plans to go public in 2010

Posted Thursday, Sep 24, 2009, 4:01 pm in Employee News

The Treasury official overseeing the government’s bank and auto bailout fund said today General Motors Co. still plans to hold an initial public offering next year, The Detroit News reported.

Herb Allison, the Treasury Department’s assistant secretary for financial stability, told the Senate Banking Committee that the government’s $76 billion investment in the auto industry was essential to preventing “a significant disruption” of the nation’s economy, the paper said. GM has received about $50 billion; Chrysler has received about $15 billion. The Treasury invested nearly $15 billion in auto finance companies and has a $3.5 billion fund to guarantee payments to auto suppliers of GM and Chrysler, the News noted.

Allison said, “Our investments in the automobile industry and other companies that have received exceptional assistance are limited and temporary. Chrysler Financial has already repaid its assistance, and an initial public offering for GM is expected next year.”

The Treasury is in the early stages of preparing for an initial public offering for GM, the paper said, but it will take several years for the government to sell off its entire 60.8 percent equity stake. An initial public offering for Chrysler is further away, the story said. (The Detroit News)
 
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