Cars

SAIC considers buying stake in GM's IPO

(Agencies)
Updated: 2010-09-21 14:13

China's top automaker SAIC Motor Corp said it may buy stake in its partner General Motors Co' initial public offering (IPO) if "conditions are favorable", Bloomberg reported Tuesday, citing Hu Maoyuan, the automaker's chairman.

Hu told Bloomberg that SAIC hasn't decided yet whether to make the investment and is awaiting the details of GM's share sale. The company would make the right decision once they know details, he said.

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GM filed for an IPO in August as the US government seeks to pare the 61 percent stake it gained in the company through its bankruptcy and $50 billion taxpayer bailout last year, according to Bloomberg.

GM's IPO will be open to overseas investors, the US Treasury said in a statement on its website.

Retail and institutional investors will be offered shares, and the Treasury "will not involve itself in decisions regarding allocation of shares to specific buyers," the department said.