GM to enlist more bookrunner banks for IPO: sources

NEW YORK (BestGrowthStock) – General Motors Co (GM.UL: ) likely will enlist at least eight more banks as joint bookrunners after the initial regulatory filing for its public stock offering, sources familiar with the process said this week.

GM is expected to file a prospectus with the U.S. Securities and Exchange Commission early next week. The filing is expected to include only JPMorgan and Morgan Stanley, which were selected as the lead underwriters on the IPO.

As banks jockeyed for the lead underwriting slots on the IPO, they offered fees that were about 2 percent or 2.5 percent of the offering size, said people familiar with the situation.

Goldman Sachs (GS.N: ) came in with an even lower offer — just 0.75 percentage points, according to several sources with knowledge of the offer. But the U.S. government, which had veto power over the choice of underwriters, was reluctant to approve a lead role for Goldman, a person briefed on the matter said.

JPMorgan had offered to take its share of the underwriting fee in GM stock rather than cash to show it was literally invested in GM’s success, according to sources familiar with the discussions. That offer was ultimately rejected.

Goldman Sachs and JPMorgan declined to comment.

(Reporting by Clare Baldwin and Soyoung Kim. Editing by Robert MacMillan)

GM to enlist more bookrunner banks for IPO: sources