It’s a done deal, says Sinocast via Trading Markets. Chen Hong, president of China’s SAIC has gone to the US. He’s not there to visit Niagara Falls and Yosemite. He’s there to negotiate how much of SAIC’s $5.7b in cash and cash equivalents will be converted into GM stock on November 18.
GM officially posted its prospectus on November 3, and executives of SAIC have been analyzing it. They probably haven’t seen anything new. Few people know more about GM than China’s SAIC.
Buying some GM stock is probably a good investment, if only to dampen the anti-Chinese rhetoric. Have we heard anything anti-Chinese from the UAW lately?