subject: Michigan GMC Dealers May Be Watching the Stock Market More Closely This Week [print this page] Michigan GMC Dealers May Be Watching the Stock Market More Closely This Week
DETROIT, M.I. Michigan GMC dealers have a big week ahead of them but it's not because of a new model debut. As MI Auto Times had reported this is the week that General Motors will be ringing the big bell at the New York Stock Exchange to announce GM stock is now available for purchase.
Michigan GMC dealers as well as Michigan Buick dealers and Michigan Chevrolet dealers all have a big stake in Thursday's initial public offering. One of the main factors that could directly affect their dealerships' profits is the government's current stake in GM. If all goes according to plan and the government reduces its hold in GM from 61 percent to 43 percent, GM gains more freedom to do more for its Michigan GMC dealers since the company will have fewer restrictions from the government.
It's almost been a year and a half since GM's bankruptcy and according to The Detroit News, GM CEO Dan Akerson is supposed to ring the bell to announce GM is back. The Detroit News also reported that at one time GM stock was "one of the most traded in the world."
The planned 365 million shares of common stock being offered are set at an initial price of around $26 to $29 per share, but could increase to $30 or higher. Another factor that will be pushing the price mark higher is China's SAIC Motor Corp's interest in GM. ABC News reports SAIC Motor Corp is a company that will be taking a claim in GM's future if a current deal in negotiations between the two forces is approved.
Pricing is will be set most likely the night before the big offering.
