NEW YORK, Nov 7 (Reuters) - General Motors is likely to price at the high end of the $26-$29 per share range when it makes its IPO debut on Nov 17, but Barron's raises the question of whether its Wall Street underwriters are being too conservative in pricing the deal.
The automaker's strong third-quarter results, analysts' views and the levels at which the unsecured debt of the old GM is trading could imply a price higher than the expected range, according to Barron's.
The underwriters will generate the high investor demand they seek if they stay true to form and price low, Barron's said.
But such an outcome could also generate a political backlash by leaving money on the table that could have gone to taxpayers, according to Barron's. Keywords: GM/SHARES (Reporting by Helen Chernikoff; Reuters Messaging: helen.chernikoff.reuters.com@reuters.net; e-mail: helen.chernikoff@reuters.com; Tel: +1-646-223-6127) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
The automaker's strong third-quarter results, analysts' views and the levels at which the unsecured debt of the old GM is trading could imply a price higher than the expected range, according to Barron's.
The underwriters will generate the high investor demand they seek if they stay true to form and price low, Barron's said.
But such an outcome could also generate a political backlash by leaving money on the table that could have gone to taxpayers, according to Barron's. Keywords: GM/SHARES (Reporting by Helen Chernikoff; Reuters Messaging: helen.chernikoff.reuters.com@reuters.net; e-mail: helen.chernikoff@reuters.com; Tel: +1-646-223-6127) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
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