GM to launch massive stock offering Thursday: Source

NEW YORK: US automaker General Motors is expected to take a leap away from government control on Thursday with a share sale that promises to be one of the largest in US history, a source close to the issue said Monday.

GM will re-enter the stock market after it was forced into a state-backed bankruptcy reorganization in June 2009, reducing the government's stake and continuing the company's rehabilitation.

Banks "will set the (stock) price on Wednesday and trading will start on Thursday," the person said on condition of anonymity.

GM announced the initial public offering (IPO) on November 3, an offer worth as much as 15 billion dollars if a high-demand clause is activated.

The offering will consist of 365 million shares of common stock, with an estimated price range of 26 dollars to 29 dollars per share. GM will also issue 60 million preferred shares at 50 dollars per share.

Nationalized during the financial crisis, GM is currently 60.8 per cent owned by the US federal government, while the Canadian government owns 11.7 per cent of the capital and the United Auto Workers union holds a 19.93 per cent stake including warrants.

The US government's share is expected to fall to 43.26 per cent after the sale, according to research firm Dealogic.

Last week, GM posted a two-billion-dollar third-quarter profit after years of painful cuts, a major revamp of its product portfolio and a slow-but-steady recovery by the auto industry from the worst downturn in decades.