As GM prepares for an initial public stock offering, the question being asked is: Does anyone want a part of GM? The question the government is asking is: Does anyone want a part of GM at $134 per share? That is the estimated price at which shares will have to sell in order for the government to recoup its $50 billion investment in the Detroit automaker. (That figure does not include a $6.7 billion loan that has already been repaid.) The Obama administration is looking to rid the federal government of its 61 percent majority stake in GM.
The $134-per-share figure is higher than GM has ever traded. However, analysts are optimistic about the sale, citing GM's tighter focus on its four core brands, Buick, Cadillac, Chevrolet and GMC; its decreased debt; its leaner operating infrastructure; and recent popular models. But the price at which shares of GM will sell is still a matter of speculation.
According to the Washington Post, "the government's estimate that the shares would need to sell for $134 came from Neil M. Barofsky, special inspector general for the Troubled Assets Relief Program, in a recent letter to Sen. Charles E. Grassley, R-Iowa."