GM's IPO values firm at $50B

NEW YORK, Nov. 2 (UPI) -- General Motors Co. plans to turn the U.S. government into a minority shareholder soon, sources told The Wall Street Journal.

The government currently owns 61 percent of GM, having loaned it nearly $50 billion last summer as the firm fell into bankruptcy. By the end of November, however, GM is expected to raise $10 billion with an initial public offering, selling 24 percent of the company's holdings.

The plan also calls for the U.S. Treasury to sell $7 billion of its holdings.

Shares are expected to be priced at about $27.50 per share with initial prices to be determined Nov. 17 for a sale held Nov. 18. That would value GM at about $50 billion.

Following that plan would reduce the U.S. taxpayers' holdings to about 35 percent.

That would allow GM to ditch the nickname "Government Motors," but it also puts the Treasury Department in a corner. In order to break even on the bailout, the government would have to wait for share prices to nearly double to $50 per share before selling its remaining stock in the company, the Journal said.