Treasury pushed for higher GM IPO price: report

DETROIT (BestGrowthStock) – General Motors Co (GM.N: ) and the Treasury disagreed over the pricing for shares in the automaker’s initial public offering with U.S. officials arguing for a higher price, Bloomberg reported on Thursday.

The Treasury was seeking an IPO price of $30 a share that would have made it possible for the White House to make the case that it had recovered all the money it had committed to GM’s bailout, the news agency reported.

Bloomberg cited eight unnamed sources for its report.

GM and its bankers pushed for a lower IPO price in the low-to-mid $20 range to help ensure demand, Bloomberg reported.

The IPO pricing announced on Thursday set a range of between $26 and $29 per share, in between what GM had been seeking and the higher “Obama number” reported by Bloomberg.

GM and Treasury have both declined to discuss the IPO.

GM was restructured in a 2009 bankruptcy with $49.5 billion in taxpayer funding. Of that total, roughly $36 billion was provided by the Obama administration.

Based on the U.S. Treasury’s holding of 912 million split-adjusted shares in GM, a $30 price per share would have valued the U.S. government stake at about $27 billion.

After the IPO, GM will also have returned $9.5 billion in interest, dividends and buybacks of preferred shares that had been held by the Treasury.

GM Chairman Ed Whitacre had told Reuters in mid-October that the IPO was likely to price between $20 and $25 per share. GM later said in a filing with the Securities and Exchange Commission that Whitacre had not been speaking for the company.

(Editing by Maureen Bavdek)

Treasury pushed for higher GM IPO price: report