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GM plans to file for IPO in mid-August

General Motors plans to file a registration for an initial public offering during the week of August 16, just after reporting its second quarter results, according to two sources.
/ Source: Reuters

General Motors Co. plans to file a registration for an initial public offering during the week of August 16, just after reporting its second quarter results, according to two people with direct knowledge of the preparations.

A GM filing with the U.S. Securities and Exchange Commission would be the first step toward an IPO to reduce the U.S. government's ownership in the automaker after a $50 billion bailout in 2009.

By filing with the SEC in August, GM is aiming to complete its IPO before the November U.S. elections, according to the sources, who asked not to be named because the closed-door preparations remain confidential.

GM's second-quarter earnings report is expected to show the automaker generated cash for a second consecutive earnings period, according to one of the sources.

GM also remains in talks with Bank of America Corp., JPMorgan Chase & Co. and Wells Fargo & Co. for dealer and consumer financing for more credit-worthy borrowers, the second of the two sources said.

The United Auto Workers healthcare trust, which owns 17.5 percent of GM, and the governments of Canada and Ontario, which own 11.7 percent, are expected to sell the same share of their holdings as the U.S. government, one of the sources said.

The U.S. Treasury is expected to sell between 20 and 24 percent of its stake, sources have said.