GM Asks IPO Underwriters To Buy Its Cars

This has got to be the angle under the unturned stone

According to the report, a GM document sent to bidding banks solicited

ideas as to how we can use the IPO to reposition GM and its vehicles within the investment community including your firm’s willingness to reinvest any portion of any underwriting fees into the purchase of GM vehicles for your employees and/or company use.


Winning bidders JP Morgan Chase and Morgan Stanley refuse to comment on whether or not they agreed to this condition, but considering their fees of .75 percent is a quarter of what they would normally charge, the fact that GM even asked shows a lot of chutzpah. Says Joe Phillippi of Autotrends

That’s hardball. After beating them down on fees they want another pound of flesh. It does sound a little unusual.

Source

How ironic that JP Morgan Chase and Morgan Stanley are the winning bidders but refuse comment.

Almost makes sense, but then again, it may take more reflection to put this in perspective.

Go GM...