- GM filed a registration late Wednesday for an initial public offering of stock.
- Both common and preferred stock in GM will be offered.
- U.S. Treasury Department could reduce its share-holding to minority status.
DETROIT — In a stunning financial turnaround, General Motors, which was forced by the government into bankruptcy reorganization a year ago after losing tens of billions of dollars, filed a registration late Wednesday for an initial public offering of stock that will return it to the ranks of publicly traded companies.
GM’s IPO will enable the U.S. Treasury Department to sell off a significant portion of its 61-percent stake in GM when the revamped automaker returns this year to the capital markets.
As part of its Chapter 11 bankruptcy filing a year ago, GM was relieved of much of its staggering debt burden, while most of the company’s assets were transferred to a “new” privately held General Motors, with the government as the majority shareholder.
GM said both common stock and convertible preferred stock will be sold in the public offering.
A company statement said, “The number of shares to be offered and the price range for the offering have not yet been determined.”
The stock sale could raise $15-$20 billion, according to Wall Street estimates.
Inside Line says: No more “Government Motors.” — Paul Lienert, Correspondent
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