GM takes first step toward IPO, will sell shares to repay bailout
(AP) - General Motors has filed the first batch of paperwork needed to sell stock to the public.
GM filed the paperwork for its initial public offering with the Securities and Exchange Commission on Wednesday.
The company says the U.S. government and other stakeholders will sell common shares worth $100 million. GM will sell preferred shares worth $100 million. Those numbers are rough estimates and the amount raised in the actual stock sale is expected to be much higher.
GM got a $50 billion government bailout last year to stay in business. In exchange, U.S. taxpayers now own 61 percent of the company. The government is expected to sell at least part of its stake to get taxpayer money back. CEO Ed Whitacre says government ownership has hurt GM's sales and public image.