Nader tries his best to delay GM’s IPO

November 12th, 2010 - 8:21 pm ICT by Aishwarya Bhatt  

New York, Nov 12 (THAINDIAN NEWS) A group, led by Nader is requesting the United States authorities to block the planned initial public offering of General Motors. They argue that the delay will ensure that GM, which was saved for collapsing with taxpayers’ money, will return more profit for the taxpayers.

Nader with the allies petitioned the United States President, Barack Obama to help delay the planned offer. Part of the letter read, “The U.S. stake in GM obviously poses novel managerial challenges to the government. The appropriate response to those challenges, however, is not to run from the responsibility through passive ownership and premature sale at a loss to taxpayers”.

The letter further aid that, “As the U.S. reduces its share, so its capacity to influence such decisions diminishes. It invested precisely to preserve U.S. jobs and manufacturing capacity. It is now incumbent on the government to manage its investment to advance these objectives”

The United States government injected some $50 billion into GM. The amount ensured that the company will not collapse and slowly the prospect of the government recovering the money is very slim. The company is expected to go public by next week and the government is expected to shed about a third of the stake it has in the company.

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