General Motors has announced the details surrounding a offering of shares in an attempt to raise $13bn (£8bn) in funds to enable it to break free of government control that was the result of its bailout.

It said it would sell 365 million shares at an estimated price range of between $26 and $29 a share.
In addition, GM will also issue 60 million preferred shares at $50 per share that would convert to common shares under mandatory provisions, a less-risky form of equity that could attract dividend and growth fund investors.

“We are extremely pleased with the level of progress the company is making,” said Chris Liddell, GM’s chief financial officer.

“We will deliver a solid and profitable first year post-bankruptcy, and we are continuing to improve our balance sheet and, most importantly, the quality of our vehicles.”

The US Government has invested $50bn in the car maker to enable it to continue and emerge from bankruptcy. The offering will value GM at around $46bn, a valuation equal to competitor Ford.

Autodata said that in general, Americans bought almost one million vehicles in October, increased up to $13.4 percent from the same month last 2009. The October annualized sales rate of 12 million vehicles was the top in two years with the exemption of August last year, when the market was urged by the federal cash for clunkers refund program.


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