GM Pitches IPO To Employees, Retirees and Dealers

Edward Niedermeyer
by Edward Niedermeyer
gm pitches ipo to employees retirees and dealers

With some 17.5 percent of GM owned by the UAW’s VEBA trust, workers have been finding that their union has a hard time juggling its ownership and union responsibilities. And since workers have no real recourse against their union, GM is giving them the opportunity to profit from their sacrifices… and pay back taxpayers in the process. Automotive News [sub] reports that

GM is offering [a directed] share program as part of an IPO scheduled for November… giving about 600,000 employees and retirees [and dealers] in the United States and Canada the chance to buy stock in the company’s upcoming initial public offering at the IPO price.

The only downsides: you have to register by the 15th, and the minimum buy-in is “expected to be greater than $1,000.” Otherwise, getting in on the ground floor of GM’s IPO is a swell opportunity to keep GM’s merry-go-round spinning. Sure, the UAW VEBA fund is likely to dump all its stock at the first possible opportunity, likely driving down post-IPO values. And yes, the government will eventually have to sell off its entire stake in The General as well, meaning another 60 percent of the company’s equity will also be up for sale in the short-to-medium-term, likely depressing prices even further. Still, GM is going to need all the help it can get if it wants to be valued at or above the $50b taxpayers put into it. It’s time for the employees, retirees and fanboys to step up, put their money where their pro-bailout rhetoric is, and take their beloved company off the taxpayers’ hands.

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  • SCE to AUX SCE to AUX on Oct 12, 2010

    I am still doubting they'll actually do an IPO anytime soon. Maybe they're concealing the real IPO truth due to "competitive threats":

  • Vetteman Vetteman on Oct 13, 2010

    They will do an IPO because Wall Street wants it . The bonuses and fees are huge for Goldman and the like. Wall street has to have new paper to sell. Thats what they do. Washington desperately wants it to get their money back as the public pressure will continue to grow. As to timeing they will force it out sooner rather than later before the prospect of a second bankruptcy becomes more widely known. For petes sake boycot this offering. Do not touch shares in this company. They will not price them low enough and the companys prospects are still dismal. They screwed the old shareholders and got away with it and now they are looking for new suckers to join the game. I retired from a large GM store after 35 years , the last ten as General Manager and have nothing but contempt now for the lack of integrity and general dishonesty with which they treat their dealers, customer and their own employees. To me they still are the Heartbreak of America. ------To Buickman I love your last sentence it really sums up the company " At General Motors the results don't change just the excuses" ------------ BRAVO!

  • BklynPete BklynPete on Oct 13, 2010

    I didn't object to the bailout, but this is just flat-out disgusting. Let's face it, the fix has been in for quite a while and Akerson's the bagman. There's no greater proof of P.T. Barnum's marketing philosophy than anyone who takes the bait on this IPO. Step right up, folks.

  • Porschespeed Porschespeed on Oct 15, 2010

    They will do an IPO because that's the easiest way to sell GM to the ChiComms.