Black People : GM IPO May Recoup All Borrowed Cash

Discussion in 'Black People Open Forum' started by Kemetstry, Nov 17, 2010.

  1. Kemetstry

    Kemetstry going above and beyond PREMIUM MEMBER

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    General Motors expanded its initial public offering Wednesday by 31 percent, bringing taxpayers and the Treasury Department closer to recouping their huge investment in the revitalized American automaker.
    GM said in a statement it would increase the planned offering of common stock to 478 million shares from the previously expected 365 million shares, a sign of stronger-than-expected demand for a stake in the automaker that is just 16 months out of bankruptcy protection.
    The move, coupled with an expected stock price of up to $33 per share, would bring the U.S. government closer to getting back the $50 billion it spent bailing out GM last year. It could also make GM's IPO the largest in history for a U.S.-based company.
    GM plans to finalize the IPO share price on Wednesday. The share price is targeted at $32 to $33 per share.
    The revised terms of the IPO could raise as much as $22.7 billion and take U.S. government ownership of the automaker down to as little as 33 percent from 61 percent.
    The moves came after GM received orders worth about $70 billion for the common stock portion of the offering as of late Tuesday, a source familiar with the situation said.
    GM announced earlier it would raise the offering price to $32 to $33 per share, up from a previously announced range of $26 to $29 per share.
    The strong demand is good news for U.S. taxpayers and the Treasury, which is likely to take in more than $10 billion from the IPO proceeds while retaining a significant equity stake in the company. The Obama administration has said it would need to ultimately get $36 billion to break even, including $6 billion in pre-bankruptcy help given to GM and $30.1 billion in Chapter 11 exit financing.
    Others have said the total taxpayer help extended to GM is worth closer to $50 billion.
    If GM's stock price rises in the months and years after the offering, taxpayers will come closer to the break-even point. GM shares are expected to begin trading on the New York and Toronto stock exchanges Thursday.
    The strong Wall Street reception for GM represents a win for the Obama administration after it chose to restructure GM in an unpopular, 2009 taxpayer-funded bankruptcy that left the automaker with the stigma that it had become "Government Motors."
    GM is the first of a slate of auto-related companies ? whose ranks include Chrysler Group LLC; Ally Bank , formerly known as GMAC; and parts supplier Delphi ? expected to return to offer shares to the public in coming years.
    Auto executives and analysts said the reversal in Wall Street sentiment toward an industry that had been shut out of the credit markets in 2008 and 2009 was a positive sign.
    "This will give us a great, great precursor for the Chrysler IPO. I'm delighted; it couldn't have gone better," Chrysler Chief Executive Sergio Marchionne said on Tuesday night.
    GM earned $5 billion in the first nine months of 2010 and is on track for its first full-year profit since 2004.
    At the same time, the automaker has cautioned that fourth-quarter profit will be lower than the rate of the first three quarters because of vehicle launch costs and a higher proportion of less profitable small cars in its mix of production. GM's European unit also remains unprofitable.
    In a road show for investors spearheaded by GM Chief Executive Dan Akerson and Chief Financial Officer Chris Liddell, the automaker has emphasized both its sharply lower costs and its exposure to key growth markets like China.
    "Anyone doing an IPO might want to use this as a case study -- it's so well-scripted," Jeremy Anwyl, chief executive of auto tracking firm Edmunds, said in a blog posting.
    One of the open questions remains whether GM's China partner, state-owned SAIC Motor Corp Ltd. will participate in the IPO and how much it will invest
    The two sides have negotiated new cooperation in areas such as electric car programs in talks that began this summer. Under a tentative deal, SAIC had agreed to invest about $500 million in GM pending Chinese government approval, people with knowledge of those discussions said.
    But one person familiar with the matter said that as of Tuesday, China's Ministry of Commerce had not approved the SAIC investment.
    Sources previously told Reuters that sovereign wealth funds in the Middle East and Asia separately had committed a combined $2 billion to GM's IPO.
    Treasury will remain GM's largest shareholder after the IPO. The stake held by Canada could fall from 12 percent to just over 9 percent. The retiree health care trust affiliated with the United Auto Workers could see its stake drop from almost 20 percent to 13 percent.
    U.S. officials have said it is likely to take until the next presidential term for the government to sell off all of its holdings in GM.
    If the IPO prices at $33 per share, the U.S. government will need to see the stock rise by 47 percent to just over $48.50 to break even on its follow-on stock sales over the next several years.
    At that level, GM would have a market value of over $90 billion. By comparison, its closest rival, Ford Motor Co , has a market capitalization of just $59 billion after a rally that has sent its stock up by 65 percent this year.
    Obama administration officials have argued that it would represent a kind of success if the White House breaks even on the $30 billion that it committed to GM. Just over $19 billion in funding came from the Bush administration.
    The GM bailout spared the automaker from liquidation and saved hundreds of thousands of manufacturing jobs at the company and its suppliers, officials have said.




    :em0200:

     
  2. Ankhur

    Ankhur Well-Known Member MEMBER

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    GM's IPO can go to HELL!

    The recent flik "Wall Street part 2" was a masterpiece of whstleblowing fiction that gave up some real insight about the crap and schemes ,
    that the corporatocracy assumes it can get away with and does get away with,;
    the Big Con,
    by keeping every day people believng that they are impotent to battle or put in check their crass avarice.

    Now this knucka Bernanke, the guy that was under investigation along with Paulson over the AIG scandal, a minute ago,
    had ( or was ordered?)to enact this brilliant idea to dump 600 billion of worthless freshly printed fiat dollars into a delapidated economy, like the drunk repairman, that tries to fix a leaky roof with "Crazy glue"

    and his reason for this ?

    "The stock prices will rise and thus create a "trickle down effect" to boost the general economy"


    So realy after destroying Detroit, and half of Michigan

    by outsourcing to China and paying the thousands of union employess,
    a pink slip, so that they could pay the

    Chinese workers 3 dollars per hour to do the same work

    here they come strutting and profiling talking about an IPO to benefit every one?:10500:
     
  3. Kemetstry

    Kemetstry going above and beyond PREMIUM MEMBER

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    Yes, the game is rigged. But it's the only game in town
















    :em0200:

     
  4. Ankhur

    Ankhur Well-Known Member MEMBER

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    I feel you brother but Adam Smith had a game;
    it was called capitalism, and as evil as it was it was nothing compared to this


    this is the epitome of the corporate state according to Mussolini, or Fascism

    and Fascism is not a game with winners and losers,
    fascism is a focused desire for economic genocide

    and genocide only happens when people do not fight back

    Bust the move!

    as a Black nationalist, I see nothing wrong but everything strategilcay right with uniting with any one of any race in a solidary boycott


    This beast feeds on money!!!!!

    the breath of the beast hypnotizes the masses into ; the opiate of crass consumerism, and political complacency.

    If Blacks and whites united 4 days before Christmas

    in this nation to boycott every darn thing

    they would lose hundreds of billions since those days are the most importnat in the entire year of corporate consumer sales

    And lets be clear we are not talking about integration, white folks dont want it and we could care less about it, since most of us live in apratheid anyhow
    The white folks that regentrify in Harlem and Brooklyn, are not seeking assimilation into a neighborhood.


    What we are talking about is strategy

    and any nation within a nation understands the concept of strategy and common agendas

    For instance most whites do not want the Federal Reserve,
    and desire a return to Glass Steagall

    and some Black folks do as well, more would if we had the media to alert our community about what these things are and realy mean.

    A common battle to get rid of the Federal Reserve,
    and demand a return to Wall steet and banking regulations,
    as well as an end to outsourceing

    is something the corporate oligarchy wets their drawers about during the day and has trouble at night worrying about

    We should see this neofascist system for what it is;

    a carbon copy of the Wizard of OZ

    ole big head and flames scaring the mess out of folks,
    into a state of;
    "well that's the way things are what can you do!!!"
    all controled by a little ole frail knucka behind a curtain


    We need to start looking behind that curtain rather then waiting for some little dog to pull it!
     
  5. Kemetstry

    Kemetstry going above and beyond PREMIUM MEMBER

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    Guys who have been laid off for two years. Their bene.s running out and getting foreclosed on, dont wanna hear that

















    :em0200:

     
  6. Ankhur

    Ankhur Well-Known Member MEMBER

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    You have a right to your opinion brother



    but I prefer to rely on facts;



    and the facts of the thousands of brothers and sisters who are going through what you mention


    and worse who are listening to that message loud and clear

    in the standing room only huge auditoriums when ever, Glen Ford, Dick Gregory, Phil Valentine, Cynthia McKenney, Gary Null, Michael Moore and many other speak on this!
     
  7. Kemetstry

    Kemetstry going above and beyond PREMIUM MEMBER

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    :10500:Is it opinion that the game is rigged? Is it opinion that those that rigged the game decided to give money to their friends that got in trouble? Is it opinion that we the people, have to end up paying for it? Again!

























    :em0200:
     
  8. Ankhur

    Ankhur Well-Known Member MEMBER

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    I dont understand what you are talking about and what exactly is this game you are talking about?


    what is it called what is the sceintific name of it?
     
  9. Kemetstry

    Kemetstry going above and beyond PREMIUM MEMBER

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    Making big gobs of money

    That game


















    :em0200:

     
  10. Clyde C Coger Jr

    Clyde C Coger Jr going above and beyond PREMIUM MEMBER

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    In the Spirit of Sankofa and Peace and Love!




    Plutocracy...

    Plutocracy


    When the government of any nation forgets its people and, instead, focuses on defending and promoting the interests of powerful corporations, you no longer have a Democracy. Instead, you have a Plutocracy, where the wealthy elite control the political process and use laws to further enrich themselves at the expense of the public.

    It's an accurate description of what's happening in America today: The public is no longer represented by the Senate, the FDA, the USDA or the EPA. Instead, each of these governmental bodies (legislative for the Senate, executive for the other departments) is now operating in the interests of corporations. Campaign finance reform, of course, is impossible under such circumstances, since no corporate-controlled Senate will ever vote to cut itself off from corporate money. Thus, the only outcome of the situation is a further erosion of the integrity of U.S. legislative processes to the point where the public is impoverished, the nation is bankrupt, and the corporations run the government.


    http://www.tuberose.com/Fluoride.html



    [​IMG]
     
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