Canada Won't Sell GM Stake In IPO… What About The US?
Published: June 12th, 2010
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The CBC reports that:
Ontario premier Dalton McGuinty said Friday his government will wait to see how General Motors prices its public share offering before deciding whether to sell its stake in the company.
McGuinty said the government needs to be “patient” and sell at the most profitable time.
The Canadian and Ontario governments own about 12 percent of GM. The US Treasury, which owns about 60 percent of GM has said that it expects to sell “some” of its GM stake during the IPO, which is expected to occur by the end of this year. In short, as Ken Elias predicts, GM won’t stop being “Government Motors” after it goes public. No matter how emphatically Ed Whitacre declares victory.
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I have to comment that the Liberal Party in Power in Ontario has nothing to do with Montreal, Quebec, granted there is another Liberal government in Power in the Province of Quebec and Montreal being its largest City, both Provinces and both Parties have nothing to do with each other, other than the Name Liberal, just like in British Columbia, they too have a Liberal Party government too. In Ontario case they have been known for giving a lot of Money over many years to GM Canada, jobs etc without much of a guarantee of getting anything back,that's why Ontario is way deep in debt and they are bringing in a new Tax, much like the VAT that is in Europe on July 1st! To get more money from ordinary working people and let companies pass off there expenses to the ordinary working people, so GM Canada will gain and people working for them will pay and pay,nice eh?
Can we get a poll going to see how many readers are bullish or bearish on this pig? I'm in the mood to short this IPO unless the uptick rule stop me.
I think the stocks will go up. Dumping it now is the worst thing you can do, in my opinion. Buick brand seems to be doing well in China and will probably do well in North America. Cadillac have been reinvented so they'll hold out for a bit. They got the Camaro so that's pretty good. They're also doing pretty well for themselves in emerging markets and especially in China. Wait for it and sell it at the right time.
Hold on to your hats speculators. I would put the chances of success down in the 10% range. We now live in a global interconnected world information wise. The Saylor Lexus 911 call was a watershed moment for Toyota that raced around he world and focused a spotlight on their safety issues, costing them a ton of time and money. Lucky for Toyota nobody has been able to prove a direct link to them. My point here is that GM has lots of real safety issues that have not come to light in a front page story kind of way but they are getting very close and all it will take is one good recorded audio or video clip to do it. Does anyone think that GM would have faired as well as Toyota if the Lexus had been a Buick? There is no doubt in my mind that GM would have been finished. The following is an example of GM's latest close call; http://wkyt.videogenesis.net/watch?v=9917 There will be others - my guess is an electrical fire.