Report: China's SAIC Motors will buy shares of GM IPO
While General Motors may be jetting around the globe in an attempt to woo investors, one company has made it clear it wants to snap up plenty of GM stock once The General goes public. Chinese manufacturerSAIC Motor President Chen Hong is currently in the States to negotiate with the American automaker about procuring GM shares. His company currently packs around $5.7 billion in cash or cash equivalents, so SAIC Motor shouldn't have any problem laying its hands on more than few GM shares.
SAIC has a history of working closely with GM in the past. The two companies have joined forces on everything from powertrain development to full name plates. If anyone knows the ins and outs of working with the biggest of the big three, it's these guys.
GM has announced that the company will go public once again on November 18 and plans to raise $10.6 billion in the process. Look for shares to go for anywhere between $26 and $29. GM will also offer $3 billion in preferred stock at the same time. Exactly how much of that goes to SAIC Motor remains to be seen.
[Source: Trading Markets via TTAC | Image: Phillippe Lopez/AFP/Getty Images ]
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