Jump to content

Treasury Dept. hires investment bank to advise on GM IPO sale


Recommended Posts

Treasury Dept. hires investment bank to advise on GM IPO sale

David Shepardson / The Detroit News

Washington -- The U.S. Treasury Department hired New York investment bank Lazard Frères & Co. to advise it on General Motors Co.'s initial public stock offering.

The Treasury signed the contract with Lazard on Monday and made it public Friday. Lazard will counsel Treasury on selling its stake in the automaker.

The government owns 61 percent of GM, which it swapped for about $43 billion of the $50 billion it loaned to the automaker. GM has repaid $6.7 billion. The advice also may cover the Treasury's investments in Chrysler Group LLC and Ally Financial Inc., formerly GMAC Inc.

Lazard will receive a monthly fee of $500,000 for the first year, which will drop to $250,000 if a sale is not completed in that time.

Lazard's work will include valuing the government's assets, offering advice on potential transactions and analyzing alternatives for disposing of the assets.

GM reported an $865 million first-quarter profit Monday and said it would go public when it was ready but offered no timetable. It was GM's first quarterly profit since 2007.

Also Friday, Treasury lowered its estimated losses on the $85 billion auto industry bailout to $24.6 billion, from $28.2 billion.

Other outside estimates, from the Congressional Budget Office, have predicted losses of about $30 billion on the bailouts of GM, Chrysler and Ally.

"The performance of the domestic auto industry has improved," Treasury said Friday.

The new estimate lowers the government's expected loss from the $700 billion Troubled Asset Relief Program by $11.4 billion, to $105.4 billion.

The auto rescue money came from the TARP fund.

From The Detroit News: http://detnews.com/article/20100522/AUTO01/5220324/1148/auto01/Treasury-Dept.-hires-investment-bank-to-advise-on-GM-IPO-sale#ixzz0oqncuYCp

Link to comment
Share on other sites

Join the conversation

You are posting as a guest. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.



About us

CheersandGears.com - Founded 2001

We  Cars

Get in touch

Follow us

Recent tweets

facebook

×
×
  • Create New...