Comments on: GM IPO should borrow from European privatizations http://blogs.reuters.com/breakingviews/2010/08/04/gm-ipo-should-borrow-from-european-privatizations/ Wed, 22 May 2013 21:12:54 +0000 hourly 1 http://wordpress.org/?v=3.4.2 By: ehsbob http://blogs.reuters.com/breakingviews/2010/08/04/gm-ipo-should-borrow-from-european-privatizations/comment-page-1/#comment-3279 ehsbob Thu, 05 Aug 2010 16:26:47 +0000 http://blogs.reuters.com/columns/?p=3685#comment-3279 European privatizations were sold to retail investors for political, not financial, reasons: primarily to avoid the appearance of large institutions taking control of what had been public entities. The GM situation is not the same, and the analysis in this article is flawed. GM shares are already owned (indirectly, through the U.S. Treasury) by taxpayers, who will realize a return only when those shares are sold; the price at which the Treasury sells those shares (presumably at a time when Treasury deems the shares to be over-valued) is not to be confused with the price at which GM sells shares are sold to new investors in an IPO. European privatizations were sold to retail investors for political, not financial, reasons: primarily to avoid the appearance of large institutions taking control of what had been public entities. The GM situation is not the same, and the analysis in this article is flawed. GM shares are already owned (indirectly, through the U.S. Treasury) by taxpayers, who will realize a return only when those shares are sold; the price at which the Treasury sells those shares (presumably at a time when Treasury deems the shares to be over-valued) is not to be confused with the price at which GM sells shares are sold to new investors in an IPO.

]]> By: doctorjay317 http://blogs.reuters.com/breakingviews/2010/08/04/gm-ipo-should-borrow-from-european-privatizations/comment-page-1/#comment-3272 doctorjay317 Thu, 05 Aug 2010 03:20:29 +0000 http://blogs.reuters.com/columns/?p=3685#comment-3272 Why would any sane investor want anything to do with GM anymore when there are literally thousands of investment choices? They have been on and off the bankruptcy threadmill several times. Save your time and money. Why would any sane investor want anything to do with GM anymore when there are literally thousands of investment choices? They have been on and off the bankruptcy threadmill several times.

Save your time and money.

]]> By: CDN_finance http://blogs.reuters.com/breakingviews/2010/08/04/gm-ipo-should-borrow-from-european-privatizations/comment-page-1/#comment-3267 CDN_finance Wed, 04 Aug 2010 23:23:58 +0000 http://blogs.reuters.com/columns/?p=3685#comment-3267 Makes me think of other highly anticipated IPOs - namely Tim Hortons (hey, I'm Canadian). The public demand was ravenous but it was mainly an institutional offering. There was an opening week surge as demand was squeezed by the minimal supply... then the stock sank back to it's IPO level and hasn't moved since. Let's hope that average Joe Americans can buy the shares at a reasonable price for the company their taxes saved! Makes me think of other highly anticipated IPOs – namely Tim Hortons (hey, I’m Canadian). The public demand was ravenous but it was mainly an institutional offering. There was an opening week surge as demand was squeezed by the minimal supply… then the stock sank back to it’s IPO level and hasn’t moved since. Let’s hope that average Joe Americans can buy the shares at a reasonable price for the company their taxes saved!

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