US may choose lead bank on GM IPO next week-report

CHICAGO, May 29 (BestGrowthStock) – The U.S. Treasury and General
Motors Co (GM.UL: ) may select a lead underwriter for an initial
public offering for the automaker as early as next week,
Bloomberg News reported on Saturday.

A bank needs to be picked soon in order to prepare for an
offering by the fourth quarter, and the Treasury is likely to
have more say in the selection than the carmaker itself,
according to the report, which cited two unnamed sources
familiar with the matter.

The U.S. government acquired 61 percent of GM’s shares
through its $50 billion bailout of the carmaker, which emerged
from a government-sponsored bankruptcy last July.

GM and U.S. Treasury officials met this month with senior
officials from Goldman Sachs Group (GS.N: ) Inc, Bank of America
Corp (BAC.N: ), Citigroup Inc (C.N: ), JPMorgan Chase & Co (JPM.N: )
and Morgan Stanley (MS.N: ) (Read more about the money market today. ), the report said, citing one of the
sources.

The bankers were asked about how much stock they would
recommend selling, how much they thought GM might be worth, and
what roadblocks might come up, the report said.

Choosing a lead underwriter in the next week or two would
allow the company to file its IPO registration with the
Securities and Exchange Commission by July and sell shares to
the public by October or November, according to the report.

A GM spokesman contacted by the news agency said he did not
know of any imminent decision, and a U.S. Treasury spokesman
did not respond to a request for comment.

Treasury has hired Lazard Ltd (LAZ.N: ) to advise the
government on an IPO of the company.

GM chief executive Ed Whitacre said in April that an IPO
was a real possibility later this year or in 2011.

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(Reporting by Ann Saphir, editing by Vicki Allen)

US may choose lead bank on GM IPO next week-report