auto industry, chrysler, ford, general motors, investment, japan
Back in November 2008, US automakers were a hot topic in investment terms, with fear-driven speculation that failure of any of the so-called 'Big Three' automakers – General Motors, Ford and Chrysler – would be devastating to the US job market. By the end of 2008, a glimmer of hope in the form of government bail-outs, offered some relief to workers fearing job losses, and investors breathed a collective sigh of relief. By February 2009, GM and Chrysler were given the task of submitting plans to authorities on how they would utilize government assistance to...
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general motors, investment portfolio, investors, ipo, us treasury
Since General Motors put word out that it was planning an initial public offering (IPO) the response from eager investors has resulted in a revision of the original IPO figure and, starting Thursday November 18, GM will be offering $4.6 billion worth of preferred shares, as well as 478 million common shares which should fetch between $32 and $33 per share. This move will go down in US stock market history as the largest IPO on record, even if preferred shares are taken out of...
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chrysler, general motors, investors, ipo, us market
In mid-August General Motors filed the necessary documentation with US regulatory authorities for an IPO reportedly to the value of around $50 billion. GM took this step to extricate the company from the US and Canadian authorities that are currently major shareholders, holding 72 percent of GM's equity. The success of the IPO would depend largely on whether investors are prepared to give General Motors another chance, after it had to be bailed out of potential bankruptcy more than a year ago. So, with a lot riding on...
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china, general motors, investors, ipo, regulators, united states
It was thirteen months ago that the U.S. government rescued General Motors from bankruptcy and landed up owning around 61 percent of the company in return for financial assistance to the tune of $50 billion. And now, despite the weak IPO market and a less than inspiring track record, GM is set to offer shares to the public once again in an effort to pay off their debt and reclaim full ownership of a company that was once part of the portfolio of many serious investors. But opinion is divided...
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environment, ford, general motors, market sectors, recession
In an ongoing effort to rejuvenate the U.S. auto manufacturing industry, an additional $2 billion has been allocated to CARS – Car Allowance Rebate System – more commonly referred to as "Cash for Clunkers". This is over and above the amount of $1 billion which was originally allocated to the program, giving consumers between $3,500 and $4,500 on the trade-in of older model gas-guzzling vehicles. Cash for Clunkers not only promotes going green and reducing motorists' carbon footprint, but at the same time is boosting new car sales which have been hard hit by the current recession.
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credit rating, fannie mae, general motors, investment, investors, lehman brothers
While there may be some dissension in the world of finance with regard to the meaning of the term "fallen angels", in general it refers to stocks that were once highly sought after and, due to any number of reasons, have fallen from grace with investors. The recent spate of companies that have had their credit ratings downgraded to below investment grade or "junk" status are considered to be fallen angels.
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bankruptcy, detroit, general motors, investors, new york
Following three days of hearings in New York's bankruptcy courts last week, Federal Judge Robert Gerber approved a plan for General Motors to make a government aided come-back from bankruptcy. Judge Gerber noted that the multi-faceted plan was "the only available means to preserve the continuation of GM’s business". Having filed for court protection on 1 June, General Motors will essentially create a new company, one that is free of crippling debt and costly contracts. Unsecured bondholders who were given the opportunity to present their views at the...
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auto industry, dow jones, general motors, investors, third quarter, wall street
Wall Street started the third quarter of 2009 on a positive note, with all three major stock indicators notching up small gains on Wednesday. The Dow Jones industrial average rose 57 points, the Standard & Poor's 500 gained 4 points, and the Nasdaq composite climbed 11 points, being 0.7 percent, 0.4 percent and 0.6 percent respectively. The improved performance of stocks is being attributed primarily to better than expected housing and manufacturing reports. An especially encouraging aspect of the manufacturing reports is that customer inventories are too low, suggesting that production figures should pick...
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