The US Treasury Department said Thursday there would be no initial public offering of government-rescued automaker General Motors before October.
“Exact timing of the offering will be determined by GM in light of market conditions and other factors, but will not occur before the fourth quarter of this year,” the Treasury said in a statement.
“Treasury will retain the right, at all times, to decide whether and at what level to participate in the offering, should it occur.”
The Treasury provided about 50 billion dollars in financing to GM and owns 60.8 percent of the common stock after the leading US automaker emerged from a government-supported bankruptcy reorganization a year ago.
The initial public offering will be “a significant step” in carrying out Treasury’s previously announced intention of disposing of its investments under the 700-billion-dollar Troubled Asset Relief Program, the department said.
The Treasury said the IPO was expected to include the sale of shares owned by Treasury, GM and other shareholders.
Canada, which extended 9.1 billion dollars in loans as part of the bailout, has an 11.7 percent stake in GM and a United Auto Workers union retiree healthcare trust fund holds 17.5 percent.
Last month, GM reported a post-bankruptcy quarterly profit for the first time in three years on the back of a jump in sales and cost-cutting measures.
GM entered a government-backed bankruptcy reorganization on June 1, 2009, with liabilities of 172.8 billion dollars.
The company emerged from bankruptcy protection on July 10 with 48.4 billion dollars in debt.
