Davis Polk, Jenner & Block advise on General Motors IPO
US firms Davis Polk & Wardwell and Jenner & Block have landed the top roles on General Motors’ initial public offering (IPO).
Longstanding GM adviser Jenner is fielding a team led by corporate chief Joseph Gromacki and featuring fellow corporate partners Bill Tolbert and Brian Boch.
Davis Polk is advising the underwriters, a group that includes Morgan Stanley, JPMorgan, Bank of America Merrill Lynch and Citigroup. Corporate partners Richard Drucker and Sarah Beshar led for the New York firm.
The IPO, announced earlier this week, is understood to be worth around $100m (£65m) with share trading potentially raising up to $20bn (£12.9bn). It comes a year after the car giant was bailed out by the US government after it filed for Chapter 11 proceedings in June 2009.
Other firms advising GM on the proceedings and subsequent restructuring of the business included Weil Gotshal & Manges, Dewey & LeBoeuf, Baker & McKenzie. In Europe, Clifford Chance and Gleiss Lutz also acted for the company.
While GM has not disclosed how many shares will be made available in the IPO, it is believed that the offering will see the US Treasury reduce its current 61 per cent stake in the business.
Readers' comments (3)
Mary L. Garrison | 20-Aug-2010 2:19 pm
I would like to know what GM plans to do about former stock holders whose stock holdings are now worth zilch due to their bankruptcy. The big talk now is opening up so the public can purchase stocks in the new revised GM., but what about us who are holding stocks that are now worthless. Is GM going to make any effort to repay us before opening up to new investors?
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Cecil Heidtbrink | 20-Aug-2010 3:03 pm
What happens to MTLQQ?
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Anonymous | 24-Aug-2010 9:31 am
Mary, you had equity in a firm that was insolvent. Under normal circumstances it would have gone under. You lose everything. That's the point of equity.
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