China's SAIC Eyes Big Stake in GM

Move could pose dilemma for Treasury
By Kevin Spak,  Newser Staff
Posted Sep 20, 2010 12:34 PM CDT
SAIC Chairman Hu Maoyan, left, and then-GM CEO Rick Wagoner unveil the Buick Riviera concept, left, and the E-Flex Fuel Cell variant for the Chevrolet Volt at the Shanghai Auto Show, April 20, 2007.   (AP Photo/General Motors, Natalie Behring, HO)
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(Newser) – China’s SAIC Motor Corp. is considering making a big grab for GM shares when the government sells off its stake in the company, creating a potential political dilemma for the Treasury, the Wall Street Journal reports. GM is set to go public again in November, and the government, which owns 61% of the company, has promised that no single investor or group of investors will get “a disproportionate share or unusual treatment.”

According to the Journal, the feds are concerned about the political backlash that would come if the iconic automaker becomes foreign-owned so soon after its taxpayer rescue. On the other hand, they feel they must keep the sale open to everyone, in order to drive the sale price as high as possible.

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