U.S. Treasury pushed for higher GM IPO price-report

* Treasury pushed for $30 per share in GM IPO-Bloomberg

* Higher “Obama number” was resisted by banks, GM-report

DETROIT, Nov 4 (BestGrowthStock) – General Motors Co (GM.N: ) and the
U.S. 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 U.S. 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)

U.S. Treasury pushed for higher GM IPO price-report