GM raises stock price range due to investor demand

[Omaha Steve]

Source: AP

By TOM KRISHER

DETROIT (AP) - A confident General Motors has added 20 million shares of preferred stock to its initial public offering, and it raised the estimated price range for common shares by about 14 percent to $32 to $33.

The Detroit automaker, just 16 months out of bankruptcy protection, will now sell 80 million shares of preferred stock for $50 each when its offering takes place on Thursday. Common shares will be sold by the U.S. government and two other owners, who inherited the stock for helping GM get through a painful restructuring last year.

GM announced the changes in a statement issued Tuesday morning. The automaker gave no reason for the increases, but people briefed on the sale say it's because of high investor demand. One person said bankers handling the sale had seven times more orders for the common stock than shares.

Earlier this month, GM said its owners will sell 365 million common shares for $26 to $29 each. GM also planned to sell 60 million preferred shares for $50 each.


Read more: http://apnews.excite.com/article/20101116/D9JH8TLO1.html

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This April 21, 2009 file photo shows General Motors Co. world headquarters in Detroit. A confident General Motors has added 20 million shares of preferred stock to its initial public offering, and it raised the estimated price range for common shares by about 14 percent to $32 to $33.(AP Photo/Paul Sancya, file)

[Crowman1979]

1. You've got to be F***in kidding me?!?!

Way overpriced IMO! How much do you wanna bet that Jim Cramer on CNBC is gonna con his viewers into buying this stock, then a few months later--start shorting it.

[DCKit]

2. You think they'll wait a few months?

The vultures'll be on it in ten days or less.