China Watch : SAIC Motor “closely watching” General Motors’ IPO

Automotive News Europe, 20th September, 2010

SEOUL (Bloomberg) – SAIC Motor Corp. said it’s “closely watching” the initial public offering of General Motors Co. after Reuters reported the Chinese company is in talks to buy a stake in the largest U.S. automaker.

“SAIC is closely watching the progress of a GM IPO,” Judy Zhu, a spokeswoman for the automaker, said in a mobile phone text message today. “As a strategic partner of GM, SAIC wishes the success of the GM IPO.”

SAIC, GM’s partner in China, is in talks to buy a stake in the carmaker, Reuters reported on Sept. 18, citing unidentified people familiar with the situation. GM’s initial public offering will probably be open to overseas investors as the U.S. Treasury seeks to pare its stake in the company.

“We expect that potential investors will be sought across multiple geographies with a focus on North American investors,” according to a statement posted on a Government web site. Retail and institutional investors will be offered shares, it said.

The U.S. Treasury holds a 61 percent stake in GM following a $50 billion taxpayer bailout for the Detroit-based carmaker, which filed for bankruptcy protection in June 2009.

GM “cannot comment on speculation surrounding a public offering,” Shanghai-based spokesman Mike Albano said in an e-mailed statement on Sept. 18. GM filed for the IPO in August.

[Source: Automotive News Europe/Bloomberg]

Clive Goldthorp

About the Author:

Clive claims that his interest in the BMC>MG story dates back to his childhood in the 1960s when the family’s garage premises were leased to a tenant with an Austin agency. However, back in the 1920s and 1930s, his grandmother was one of the country’s first female Garage Proprietors so cars probably run in his genes! Admits to affairs with Alfa Romeos, but has more recently owned an 06/06 MG TF 135 and then a 15/64 MG3 Style… Clive, who was AROnline’s News Editor for nearly four years, stood down from that role in order to devote more time to various Motor Racing projects but still contributes articles on as regular basis as his other commitments permit.

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