Chillin' out till it needs to be funded
Meanwhile GM announced a nearly $23 billion filing, taking a fancy to the figure mopped up by AgBank in China and HongKong. While AgBank used two green shoe entitlements of 15% to get to the largest IPO tab, GM intends to float the $5 b in preferred shares from the government alongwith $18 billion in common equity. The treasury has agreed to denote itself as one of the selling common shareholders in the issue contributing $10 illion worth in Common. Compared to the overall 61% they hold, this is just a minor beginning. The IPo will leave GM with 500 mn shares outstanding and the government $15 bn richer after the $50bn payout from the Treasury nearly sunk its own finances last summer.
In the meantime GM earned $1.3 billion in the latest quarter with its pruned portfolio of Buick, Cadillac , Chevy and the star performer GMC. The quarter’s revenues definitely revived the old GM with a $33 billion take and a lot of institutions out there would want a piece of the new GM in the new avatar
Intel President and CEO Paul Otellini believes he is adding a third pillar of his own to Intel’s Computing performance and networking capabilities they already boast of. Of course buying CISCO if it ever comes to that would be a wholly different ball game for the Palo Alto company who expects to add the security layer to its new mobile solutions. intel has sales of around $28-30 billion from its continuing leadership in semiconductor devices, as Moore’s law continues to beget more pricing drops for customers’ smiling pockets than the earlier era’s annual performance upgrades
In this week again, HP came up with a pricey offer for 3PAR paying $1.6 billion but in this case to outbid Dell