Forbes discusses the oddly timed GM IPO filing:

in its application to the Securities and Exchange Commission — which, guess what, will come through just in time to make an IPO possible before the November elections! — GM admits that its “disclosure controls and procedures and internal control over financial reporting are currently not effective.” And this “could materially affect our financial condition and ability to carry out our business plan.”

Companies include all kinds of outlandish mea-culpas in their IPO applications to cover their derrières in the event of investor lawsuits. However, this one goes to the heart of the information that investors need to determine whether GM is a good investment, especially since it is going public after only two good quarters as opposed to the usual four…

outgoing CEO Ed Whitacre…thinks that the IPO is a dumb idea. He apparently wanted to wait until GM could command a better share price and then have the company go fully public at once instead of in several installments as per the current plan. Whitacre expressed his misgivings at a recent Management Briefing Seminar in Michigan’s Traverse City, according to Sean McAlinden of the Ann Arbor-based Center for Automotive Research. “And then 48 hours later he was gone,” McAlinden says.

Same old, same old. Everything is political with these guys (you’d think they would be better at it!). First there’s the new and even more absurd Arab / Israeli peace talks in September. At the end of October there might be a GM IPO to celebrate the Dear Leader and his heavenly accomplishments. What’s planned for the beginning of October we wonder….

This entry was posted on Tuesday, August 31st, 2010 at 11:31 am and is filed under business, Democrats, General, Republicans. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.