日志
Lesson5: General Motors Files for an Initial Public Offering
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In the filing, G.M. did not disclose the number of shares that it planned to sell or a price range, but the offering has the potential to be the second largest in United States history, after the credit card giant Visa, which raised more than $19 billion in March 2008.
“The amount of securities offered will be determined by market conditions and other factors at the time of the offering,” G.M. said in a statement.
People briefed on the matter previously told the DealBook blog that the total offering was expected to raise more than $10 billion and could approach $15 billion or more.
G.M. said the offering will include preferred shares as well as common stock, though the company will not sell any additional common shares directly. The preferred shares would be converted to common stock in 2013 at a rate that was not disclosed.
The registration also did not disclose how much of a stake that the government would sell immediately, but it said taxpayers would “continue to own a substantial interest in us following this offering.” People briefed on the matter said last week that the Treasury was expected to sell about a fifth of its shares, bringing the taxpayers’ stake in G.M. below 50 percent.
The Treasury Department, in a statement on Wednesday, said it “will retain the right, at all times, to decide whether and at what level to participate in the offering.” The Treasury said the offering would not include $2.1 billion in preferred G.M. shares that it owns, which are in addition to the common shares representing a 61 percent stake.
The paperwork listed numerous “risk factors” that G.M. faces, including economic conditions, its ability to attract consumers into its dealerships and the success of its restructuring in Europe. It also notes that several top executives “have no outside automotive industry experience” and that G.M.’s performance could be affected if they “are unable to provide effective guidance and leadership.”
Numerous: a lot of
Morgan Stanley, JP Morgan Chase, Bank of America and Citigroup will be the lead underwriters.
The share filing follows last week’s announcement that Edward E. Whitacre Jr., would step down as chief executive on Sept. 1 and as chairman by year’s end. He will be succeeded by Daniel F. Akerson, a G.M. director appointed by the Treasury last year, after the carmaker emerged from bankruptcy.
be succeeded by: taken over
emerge: show up
Mr. Akerson, a former telecommunications executive currently with a private equity firm, the Carlyle Group, will be G.M.’s fourth chief executive since March 2009.
Though Mr. Whitacre was not expected to stay on for much longer, his departure had not been expected until after the share sale took place. With the change in leadership, G.M. will be seeking to assure potential investors that Mr. Akerson will provide stability at the top.
“The new G.M. is on the right track,” Mr. Whitacre said last week when he announced his plans to retire. “We have good momentum behind us and a bright future ahead of us.”
Momentum: impulse
G.M. hopes investors see the $2.2 billion that it earned in the first six months as an indication that the company has corrected its problems and will continue to grow. Most of this year’s earnings have come from North America, the region that was most troubled before last year’s bankruptcy.
By eliminating most of its debt in the reorganization, G.M. has been able to generate profits even though sales remain near the lowest levels in decades. It is operating with many fewer plants and workers, and its vehicles are commanding higher prices.
In the four years before its bankruptcy, G.M. lost $88 billion.
While the company’s operations have been streamlined, Mr. Whitacre said last month that government ownership continued to be a drag on G.M.’s sales as well as its reputation.
Streamline:
Mr. Whitacre said he wanted the Treasury to sell off its full stake as quickly as possible.
“We want the government out, period,” he told reporters earlier this month after speaking at an automotive conference in Michigan. “We don’t want to be known as Government Motors.”
