NEW YORK -- Morgan Stanley and JPMorgan Chase & Co. are likely to be the lead underwriters of a General Motors Co. initial public offering, The Wall Street Journal reported.
The U.S. Treasury Department owns nearly 61 percent of GM's common shares after providing $50 billion in bankruptcy and bailout financing. In addition to nearly $7 billion in direct loans to GM, Treasury extended $43 billion in bailout cash.
GM repaid a $6.7 billion loan in April. The rest of the U.S. investment is an equity stake that the government can sell, probably a bit at a time, after an IPO.
Last week, the Obama administration said an IPO would not happen before the fourth quarter. CEO Ed Whitacre has said an IPO is a possibility later this year or in 2011.
GM is in charge of the preparation for a stock sale, but the government retains the right to decide whether to participate and at what level.
Two top GM executives have Morgan Stanley ties. GM Treasurer Daniel Ammann joined the company in March from the bank, where he was managing director and head of industrials investment banking and advised GM on its restructuring and bankruptcy. GM Vice Chairman Steve Girsky also worked at Morgan Stanley.