Reuters exclusive on China`s SAIC nearing GM IPO stake purchase
11.10.2010
Reuters scooped all with news on Nov. 10 that General Motors was is in the final stage of talks to sell equity to Chinese partner SAIC Motor Corp as part of its landmark initial public offering. The Wall Street Journal and Bloomberg matched some of the details two days later. The story was the one of the most-read stories on Reuters.com for three days. Citing people familiar with the matter, Reuters exclusively reported that the two government-funded automakers were finalizing how much of a stake SAIC would buy in GM after discussions involving technology sharing and SAICs ambitions to move beyond the China market. But the deal also carries risks since it involves a sale of a stake in a company bailed out by U.S taxpayers in 2009 to a state-funded Chinese automaker and could face political scrutiny in Washington. Underscoring the political sensitivity, consumer advocate Ralph Nader sent a letter to President Barack Obama to request the suspension of the GM IPO, referring to Reuters story on potential SAIC involvement.
