China's SAIC close to GM IPO stake buy-sources
DETROIT/NEW YORK | Wed Nov 10, 2010 6:04pm EST
DETROIT/NEW YORK Nov 10 (Reuters) - General Motors Co [GM.UL] is in the
final stage of talks to sell equity to long-time Chinese partner SAIC
Motor Corp (600104.SS) in conjunction with its landmark initial public
offering, two people familiar with the matter said.
The two government-funded automakers are currently finalizing how much
of a stake SAIC would buy in the top U.S. automaker after discussions
involving technology sharing and SAIC's ambitions to move beyond the
China market, the sources said.
Any agreement between GM and SAIC would need Chinese government approval
and could still fall apart, the sources cautioned.
One person familiar with the matter said previously that SAIC had
initially reached out to GM to explore the prospect of taking a
"single-digit" stake in GM. The size of SAIC's prospective investment
was not known.
The final round of talks have been led by SAIC Vice Chairman Chen Hong
and could conclude as soon as the weekend, that source said.
The sources were not authorized to speak with the media and declined to
be named because the talks are private. Representatives for GM and SAIC
declined to comment.
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