Deals
GM Offering Tests Investor Confidence in Market Share, Earnings
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General Motors Co. will have to persuade investors to look past declining market share, less than a year of profitability and management new to the auto industry to buy shares in its initial public offering.
GM, 61 percent owned by the U.S., said yesterday its North America market share may fall by 2014, while the company has forecast earnings growth will slow in the second half of the year after a two-quarter return to profitability. The automaker must have a market capitalization of $69.4 billion after the IPO for the government to be able to break even on its investment, data compiled by Bloomberg show.