by Dan Murphy
September 22, 2010 06:58 AM EDT
After spending billions of dollars to bail out General Motors Co. last year, the US government is eager to unload its 61% stake of the now profitable automaker. That unloading could happen as soon as November, when GM’s anticipated IPO is launched to the general public.
One company showing increased interest in the pending IPO is GM business partner, and Chinese company, SAIC Motor Corp. According to the Wall Street Journal, SAIC has been central to GM’s success in China and is expected to continue to play a major role in future success. In fact, GM’s sales in China rose 19% for the past year, ending in August. That’s contrary to a struggling US and European market.
The sticky issue is the potential political backlash caused by selling an American icon, which was rescued from failure by the American taxpayers, to a non-American company. When the general public is allowed to purchase stock, buying is not limited to domestic investors. Anyone from foreign companies to sovereign wealth funds can purchase shares. FULL STORY