Tags: US | GM

GM Expects to Earn up to $2.1B as IPO Approaches

Thursday, 04 Nov 2010 09:15 AM

 

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink

General Motors Co. said that it expects to earn up to $2.1 billion when it reports third-quarter results next week. The forecast came as GM announced its stock will be priced from $26 to $29 per share in an initial public stock offering.

No date for the IPO was revealed Wednesday, but people briefed on the plan have said it could be around Nov. 18. The sale will allow GM's largest owner, the U.S. government, to reduce its stake in the company from 61 percent to around 35 percent.

The IPO is expected to raise about $10 billion, with $7 billion going to the U.S. Treasury and $3 billion to GM's other owners, the Canadian and Ontario governments, a union health care trust and former GM bondholders.

GM also said its owners have authorized it to split company shares three-for-one ahead of the sale.

GM now expects to report net income of $1.9 billion to $2.1 billion when it announces results on Nov. 10. The forecast is higher than the $1.6 billion the company earned in the second quarter.

© Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web

Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 

You May Also Like
Around the Web

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved