A General Motors Co [GM.UL] initial public offering will not occur before the fourth quarter this year, and the timing will be decided by the company based on market conditions, the Obama administration said on Thursday.
The U.S. Treasury, which owns nearly 61 percent of the automaker's common shares after providing $50 billion in bankruptcy and bailout financing, said GM is taking charge of the preparation for a stock sale but the government would retain the right to decide whether to participate and at what level.
"The initial public offering is expected to include the sale of shares by Treasury, other shareholders who wish to participate and GM," the Treasury said.
GM said in a statement on Thursday that there was a "a lot of anticipation and speculation" relative to an IPO.
"As we have previously said, there are a number of factors that will influence the timing, including the state of the economy, capital market conditions, state of the auto business, GM's performance and others," GM said.
Chief Executive Ed Whitacre has said that an IPO was a real possibility later this year or in 2011.
GM Chief Financial Officer Chris Liddell last month said the company had not committed to an IPO timetable and there was still a lot of work to be done.
Treasury officials said the offering's overall size and split between primary and secondary shares would be determined at a later date. GM would select the lead underwriters but Treasury would approve them and determine their fees.
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