With General Motors getting its stuff into a pile and business in order to roll out what will undoubtedly be the most massive initial public stock offering in American, or perhaps world history, some questions remain about who the major investors will be. We saw a story that stopped us in our tracks when it wondered aloud if the Chinese could end up as majority investors in the company.
The potential came to light when a Chinese auto company, (SAIC) Shanghai Automotive Industry Corporation approached GM and inquired about buying a stake in the company. The creepy thing about that? The Chinese government has a large stake in SAIC. Yeah, our stomach flopped too.
Upon reading deeper into the story, we learned that GM has been partnered up with SAIC for some time in China and that their partnership has lead the way for General Motors to be completely dominant in the ever expanding Chinese market. Ford and others are there, but sales volume is completely dominated by GM.
The analysts at Fool.com believe that the majority of investors and invested money will come from North America. Large funds from the likes of Fidelity, and other large investment companies will likely be the largest stake holders in the company.
When the IPO hits, it will be on a scale like no one has ever seen. Money will be coming from all over the globe. Hopefully the majority of it comes from right here in the USA.
Source — TheFool.com — Will the Chinese End Up Owning General Motors?
