Rattner Says GM IPO Earlier Than People Would Like

Aug 12th, 2010 | By businessnews | Category: Business

August 12, 2010, 1:24 PM EDT

By Mark Clothier

(Adds quarterly results in second paragraph.)

Aug. 12 (Bloomberg) — General Motor Co.’s planned initial public offering may be “a tad earlier than people would like,” according to the former head of President Barack Obama’s automotive task force.

It would have been better if GM had more than two profitable quarters in the books, Steven Rattner said in a Bloomberg Television interview. GM reported second-quarter net income today of $1.54 billion on a 44 percent jump in revenue, its second consecutive profit.

Increasing profitability is part of the automaker’s path toward an initial public offering. GM probably will file the registration statement with the U.S. Securities and Exchange Commission tomorrow and possibly by Aug. 16, said a person familiar with the plan who asked not to be named because the discussions are private.

GM, which is 61 percent owned by the U.S. government, emerged from bankruptcy in July 2009 and seeks to raise as much as $16 billion in the offering, which would make it the second- largest, behind Visa Inc.’s $19.7 offering in 2008.

GM also said today Ed Whitacre, who joined the Detroit- based automaker in July 2009, will step down as chief executive officer Sept. 1 and be replaced by director Dan Akerson. Akerson will become chairman when Whitacre steps down from that post at the end of the year.

Profit in the three months that ended in June rose 44 percent from $1.07 billion in the first three months of the year. Revenue increased to $33.2 billion on growing sales of the Buick Excelle in China and Chevrolet Equinox in the U.S., the company said today.

–With assistance from Bill Koenig and Keith Naughton in Southfield, Michigan and Jeffrey McCracken and Margaret Brennan in New York. Editors: Elizabeth Wollman, John Lear

To contact the reporter on this story: Mark Clothier in Southfield, Michigan, at mclothier@bloomberg.net

To contact the editor responsible for this story: Jamie Butters at jbutters@bloomberg.net.

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