Whitacre Seeks ‘Bigger, Bolder’ GM IPO as 32 Offerings Shelved
Ed Whitacre has General Motors Co. in better shape now than it’s been in years, but pushing ahead with an initial public offering this year may be tougher to manage, Bloomberg reported.
Bonds that convert into GM shares fell at the end of last week to their lowest level since Feb. 26. GM, which earned $865 million in the first quarter, is still losing money at its European unit. Chief Executive Officer Whitacre has less than four months to meet a goal of setting up a lending division. The IPO market has stumbled, with 32 deals pulled since April.
Whitacre has said he’d like to begin selling shares as soon as possible. The former AT&T Inc. chairman will need to balance his natural inclination to seek a big IPO against the need to make it successful for the government, which owns 61 percent of the automaker, said James Kahan, a former AT&T executive.
The Obama administration needs GM to go public to reduce its 61 percent stake and harvest returns on its $50 billion investment. Morgan Stanley and JPMorgan Chase & Co. are expected to lead the initial sale, people familiar with the matter said last week, and a June selection means Detroit-based GM may be able to sell shares in the fourth quarter.
Selim Bingol, a GM spokesman, declined to comment.
More Industry

World EV Adoption Set to Grow
A new report says the segment, despite recent setbacks in some regions, is poised for acceleration as many countries look to reduce pollution.
Read More →
Black Book: Weekly Market Update
Wholesale automotive auction business stayed steady last week as bidders encountered lower prices, analysts observed.
Read More →
Pricing Transparency Drives Purchase Consideration
An annual study by JD Power found that clear pricing matters to consumers on automaker websites, so much so that it increases their purchase consideration.
Read More →
Black Book: Weekly Market Update
Used-vehicle market depreciation was the prevailing story in the wholesale market last week.
Read More →
Smaller Is Looking Better
A growing number of Americans in the market for a new vehicle are opting for more affordable options, not waiting for market stability to bite the bullet.
Read More →
U.S. EV Market Slowly Stabilizes
U.S. electric-vehicle interest is slowly stabilizing since a major dip in sales after last year's end of the federal EV tax credit, and hybrids remain the leading electrified power train.
Read More →
Global EV Market Entering New Phase
Automakers are making investments to lower battery costs and optimize production to meet changing consumer needs.
Read More →
Black Book Weekly Market Update
The holiday weekend, not surprisingly, put a drag on wholesale automotive activity last week, analysts observed.
Read More →
Auto Affordability in Context
Cox Automotive points out the complex circumstances that have led to eye-popping vehicle prices.
Read More →
Black Book: Weekly Market Update
Automotive auction inventory increased last week, giving choosy bidders even more leeway.
Read More →