Canada Said to Resist U.S. Push to Sell More GM Shares in IPO

[dipsydoodle]

Source: Bloomberg

Canada and Ontario rejected a U.S. offer to sell more shares in General Motors Co.’s $15.8 billion initial public offering this week, allowing the Canadian governments to benefit if the automaker’s shares rally.

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If GM shares rise after the initial sale this week, currently offered at $32 to $33 a share, Canada will recover more of its investment in the bailout than if it sold more shares in the IPO. Canada and the province of Ontario control 11.7 percent, the U.S. has a 61 percent stake and the health fund controls 17.5 percent.

“We feel that it is the adequate balance between being part of the IPO, which we have always said we would be, and at the same time doing so in a way where we are going to chunk it out over time to try and maximize taxpayer protection,” Canadian Industry Minister Tony Clement said today.

Read more: http://www.bloomberg.com/news/2010-11-17/canada-said-to-resist-u-s-push-to-sell-more-gm-shares-in-public-offering.html

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Taxpayer protection !

[veganlush]

1. whatever dude