Ask The Best And Brightest: Who Will Be GM's "Cornerstone Investors"?
GM’s IPO filing still has yet to appear on the SEC’s EDGAR database, but while we wait for the S-1 form to clear, Reuters has some details on what to expect from the sale. The big news:
GM is mulling a plan under which sovereign wealth funds or pension funds would serve as “cornerstone investors,” a technique often used for large initial public offerings to show that key investors are supporting the deal, four people said…
Each cornerstone investor would likely be asked to commit to buying 2 percent to 10 percent of the IPO and cornerstone investors would likely account for 10 percent to 30 percent of the total IPO, one of the sources said.
On the other hand, another source says GM is targeting 15 percent of its equity towards cornerstone investors, with 20-25% is aimed at the retail investment market. Either way, Reuters points out that another recent large IPO of a government-owned business, the Agricultural Bank of China, relied heavily on cornerstone investors… but that the politics of such a strategy could be risky.
have been consulted on the question of how to balance access to the offering by retail investors against the potentially competing goal of maximizing returns for U.S. taxpayers.
the White House won’t be able to avoid any political fallout from (for example) headlines proclaiming a part-Chinese-owned GM.
On the other hand, getting a big investor to go large on a GM IPO could help reassure the market, which is understandably hesitant about GM’s return to public trading. But who’s got $2b to drop in a single big bet on a troubled, recently-bankrupt automaker? If GM’s can find two such investors with no major political downsides, they’d be crazy not to woo the hell out of them. But who could such investors be? Or will GM throw politics to the wind and end up in the arms of their Chinese partners? Scenario me…
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- LYNN DELANEY Mine is a 2001 Pure White Miata. I bought it at Concord Mazda. I love it but Imay be about to get rid of it I guess. It's been in my garage for quite awhile. Why? 1. I don't have a lot of money (I'm a retired teacher) And I've had issues with it that require financing. For example when you insert the key and turn it nothing happens. Why? I got it at Concord Mazda and somehow. it came to my condo shared garage to die and has remained such to this day. If you want to experience it you put the key in the keyhole and turn it but silence ensues and you wonder why but you know it's because the key was "programmed and it worked when you brought it home but not since.I'm told it requires a new battery but I've not had the financial energy to deal with it. I love my Miata but will I keep it? I'm unsure. Next step? Install a new battery...When it came home from Concord Mazda it was perfect for a quick minute. I tested it. I drove it around my block in Oakland, California just one time. That was the end of it. Since them I'm told it needs a new battery. It's a 2001. Shall I go ahead and splurge?
- Dusterdude @El scotto , I'm aware of the history, I have been in the "working world" for close to 40 years with many of them being in automotive. We have to look at situation in the "big picture". Did UAW make concessions in past ? - yes. Do they deserve an increase now ? -yes . Is their pay increase reasonable given their current compensation package ? Not at all ! By the way - are the automotive CEO's overpaid - definitely! (That is the case in many industries, and a separate topic). As the auto industry slowly but surely moves to EV's , the "big 3" will need to be producing top quality competitive vehicles or they will not survive.
- Art_Vandelay “We skipped it because we didn’t think anyone would want to steal these things”-Hyundai
- El scotto Huge lumbering SUV? Check. Unknown name soon to be made popular by Tiktok ilk? Check. Scads of these showing up in school drop-off lines? Check. The only real over/under is if these will have as much cachet as Land Rovers themselves? A bespoken item had to be new at one time. Bonus "accepted by the right kind of people" points if EBFlex or Tassos disapproves.
- El scotto No, "brothers and sisters" are the core strength of the union. So you'll take less money and less benefits because "my company really needs helped out"? The UAW already did that with two-tier employees and concessions on their last contract.The Big 3 have never, ever locked out the UAW. The Big 3 have agreed to every collective bargaining agreement since WWII. Neither side will change.