DealZone

GM IPO gassing up

June 23, 2010

It looks like the long-awaited return to market for GM is only weeks away. The listing could raise up to $20 billion, we’re told by a person with knowledge of the preparations. That would be quite a bit more than the $15 billion that has been talked about. But wait, there’s more!

What does a car company with a solid financing business do to keep the wheels moving? Sources tell us that GM is also in talks with JPMorgan Chase and Wells Fargo on deals aimed at providing improved access to consumers for auto loans at its U.S. dealerships.

GM Chief Executive Ed Whitacre and other executives have said they favor an IPO as early as this year. Bankers had expected a stock listing to raise between $10 billion to $20 billion by selling part of the U.S. government’s 60.8 percent stake in GM to investors.

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