After showing two successive quarters of profit the last one for over 1.2 billion dollars, the “New” GM appears ready to file for an IPO. The surprise resignation of CEO Edward Whitacre has cast the spotlight on Daniel Akerson.
Mr. Akerson like Edward Whitacre is veteran of the Telecom business, before coming to GM. He spent many years with MCI and for the past several years he has been managing director of the Carlyle Equity group which is a private equity firm. Many observers believe that his background in Equities is what GM needs right now.
The initial IPO could be on the table now and how it accepted by the public will have a great effect on where GM is going to go in the next few years.
GM still owes the government 50 billion dollars and it is expected that the new IPO will try to raise 16 billion in cash. If it is successful it will be a major step in revitalizing one of the great names in American Business. If it is a failure many experts feel that it will be tough for GM to continue to show profits in the coming quarters.
The Obama administration has been touting GM as the poster child for saving jobs during the financial meltdown of 2008. If they can quietly go about the IPO and begin to repay their debt, it could be a major public relations coup for the Whitehouse.
Keep those stops tight
Todd “Bubba” Horwitz