G.M. is planning to hold its first public stock offering in late November, giving the Treasury Department its first opportunity to begin selling off the 61 percent stake in G.M. How many shares the government decides to sell will be determined by the price offered. In order to break even, the Treasury Department estimates that the stock must sell for almost $135.00 per share.
Last week, the Treasury Department said it would not seek special deals with large investors to buy big chunks of its stake to ensure that small investors get a fair chance at buying GM stocks. “We expect that a large and diverse group of institutional investors will be offered an opportunity to participate, with no single investor or group of investors receiving a disproportionate share or unusual treatment.” the Treasury said.
But concerns about foreign influence over the largest American automaker are growing as Chinese automaker, the SAIC Motor Corporation, expresses interest in buying a stake in GM. The Shanghai-based company has had a longtime partnership with G.M. in China. They are one of China’s largest automakers and recently bought half of G.M.’s India division.
There was no comment from the Treasury about the possibility of a foreign company buying a big stake in G.M.