Published: Oct. 29, 2010 at 1:37 PM
DETROIT, Oct. 29 (UPI) -- U.S. automaker General Motors said it would reduce its debt by about $11 billion ahead of next month's initial public stock offering.
Mirko Mikelic, senior portfolio manager at Fifth Third Asset Management, said the move was "obviously" designed to put a shine on the company's books in advance of an initial public offering.
"It's obviously cleanup time before the IPO," he said, the Detroit Free Press reported Friday.
GM said it had paid $4 billion in cash and common stock to its hourly workers' pension plan and $2.8 billion to the United Auto Workers' Retiree Medical Benefits Trust. It also said it would buy $2.1 billion of preferred stock from the government, which loaned $49.5 billion to the company in Trouble Asset Relief Program funds in 2009.
The U.S. Treasury said GM, once the sale is completed, will have repaid the U.S. government $9.5 billion and will then owe taxpayers $40 billion.
This entry passed through the Full-Text RSS service — if this is your content and you're reading it on someone else's site, please read our FAQ page at fivefilters.org/content-only/faq.php
Five Filters featured article: Beyond Hiroshima - The Non-Reporting of Falluja's Cancer Catastrophe.
No comments:
Post a Comment