The first step is taken to get the Government out of Government Motors.
Just moments before Wall Street called it a day, Wednesday afternoon, General Motors announced it was filing its much-anticipated and unexpectedly delayed IPO.
The move, which must still be formally approved by the Securities and Exchange Commission, as well as Canadian regulators, will begin the process of selling off the majority 60.8% stake in the troubled automaker held by the U.S. Treasury – as well as a chunk of stock now in the hands of the Canadian and Ontario governments, which also helped bail out GM as it emerged from bankruptcy last year.
The big question is whether investors on Wall Street and the Toronto stock exchange will respond favorably to the offering, the only way the three government bodies will be able to recover the tens of billions of dollars invested by taxpayers to prop up the reborn GM.
TheDetroitBureau.com will have further updates shortly.