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GM IPO filing pushed to early next week

General Motors Co. has delayed its IPO filing until early next week as it updates its prospectus with the recent CEO change, a source familiar with the situation said on Friday.
Handout shows new GM Chief Executive Daniel Akerson
Dan Akerson, a former CEO at Nextel, will take over from GM CEO Ed Whitacre in September. Ho / Reuters
/ Source: msnbc.com news services

General Motors Co. has delayed its IPO filing until early next week as it updates its prospectus with the recent CEO change and a management risk factor, a source familiar with the situation said on Friday.

The filing with the U.S. Securities and Exchange Commission was originally scheduled for Friday, sources said previously.

GM Chief Executive Ed Whitacre said on Thursday that he would step down and Dan Akerson would take over, effective in September.

The source who said the filing had been delayed declined to be named because preparations for the IPO are not public.

On Friday, the White House hailed GM's new CEO Akerson as a proven and respected executive who can guide the company's recovery. Spokesman Robert Gibbs said President Barack Obama was informed of Edward Whitacre's resignation and was grateful for his service.

GM's several-hundred-page prospectus will not provide the number of shares to be sold or the pricing range. It will cite the company's bankruptcy, steps completed in restructuring, financial projections, details of ownership, and a large set of risk factors, sources have said.

GM is now adding a new risk factor regarding the departure of Whitacre and increased uncertainty about the automaker's long-term leadership, and the change is expected to take more than a day, the source said.

The top U.S. automaker secured a $5 billion credit facility this week, two sources briefed on the deal told Reuters on Wednesday, clearing the last remaining hurdle toward an initial public offering of stock expected to make the U.S. government a minority shareholder.

Ten major banks have signed on to the $5 billion credit facility, committing up to $500 million each, but the individual commitments would be cut as GM adds more banks in other countries and emerging markets as part of its efforts to attract global investors, sources said.

Bank of America Corp., Citigroup Inc., BarClays Capital, Deutsche Bank, Goldman Sachs Group, JPMorgan Chase, Morgan Stanley and Credit Suisse are among the banks on the credit facility, sources said.

JPMorgan and Morgan Stanley are the two lead underwriters for GM's IPO, but those banks on the credit line will also be added to the IPO syndicate as joint bookrunners, sources said.