GM IPO, the real deal
- Thread starter tmarket
- Start date
SAIC Motor Corp in talks with General Motors over 1% stake
http://www.guardian.co.uk/business/2010/nov/15/saic-motor-corp-general-motors-stake
http://www.guardian.co.uk/business/2010/nov/15/saic-motor-corp-general-motors-stake
TD Ameritrade Holding Corp., the third-largest U.S. retail brokerage by clients, wonât be participating in GMâs IPO, according to an e-mail from Christina Goethe, a spokeswoman from the Omaha, Nebraska-based company.
âWe have been informed that we will not receive an allocation of shares,â she said. âWe have several relationships with various underwriting firms for various products, and in this case the underwriting firm is not allocating shares for this offering.â
Fidelityâs Clients
Clients of Fidelity Investments who either execute 36 trades a year, have $100,000 of assets with the firm, or use Fidelityâs âpremium servicesâ for high net worth individuals have access to the IPO, according to Steve Austin, a spokesman for the Boston-based firm.
Fidelity has a strategic relationship with Deutsche Bank that allows them to offer the GM shares to their customers, he said. Austin declined to say what Fidelityâs allocation will be for the IPO or how much demand itâs seeing from its clients.
âWe have been informed that we will not receive an allocation of shares,â she said. âWe have several relationships with various underwriting firms for various products, and in this case the underwriting firm is not allocating shares for this offering.â
Fidelityâs Clients
Clients of Fidelity Investments who either execute 36 trades a year, have $100,000 of assets with the firm, or use Fidelityâs âpremium servicesâ for high net worth individuals have access to the IPO, according to Steve Austin, a spokesman for the Boston-based firm.
Fidelity has a strategic relationship with Deutsche Bank that allows them to offer the GM shares to their customers, he said. Austin declined to say what Fidelityâs allocation will be for the IPO or how much demand itâs seeing from its clients.
from zero hedge:
The administration is doing everything it can to make sure that the worst IPO in history, that of Government Motors of course, will not be DOA. The latest news is that Getco has been appointed to be a DMM for the year's most important IPO. As Bloomberg reports: "The Chicago-based firm will be tasked with helping trading go smoothly when the auto maker returns to the New York Stock Exchange after a 16-month absence, expected to occur Thursday. NYSE Euronext (NYX) spokesman Christiaan Brakman confirmed that Getco was selected from among the exchange's five designated market makers, who are responsible for buying and selling shares, smoothing trade imbalances and providing liquidity in designated symbols in return for incentives paid by the exchange." Well, by now it should be all too clear what "providing liquidity means."
In other words, expect Getco to internalize and churn any sell interest and make sure that the stock can only go up, up, up, until enough of it is in retail hands at which point it can find its fair value, somewhere in the neighborhood of zero.
The administration is doing everything it can to make sure that the worst IPO in history, that of Government Motors of course, will not be DOA. The latest news is that Getco has been appointed to be a DMM for the year's most important IPO. As Bloomberg reports: "The Chicago-based firm will be tasked with helping trading go smoothly when the auto maker returns to the New York Stock Exchange after a 16-month absence, expected to occur Thursday. NYSE Euronext (NYX) spokesman Christiaan Brakman confirmed that Getco was selected from among the exchange's five designated market makers, who are responsible for buying and selling shares, smoothing trade imbalances and providing liquidity in designated symbols in return for incentives paid by the exchange." Well, by now it should be all too clear what "providing liquidity means."
In other words, expect Getco to internalize and churn any sell interest and make sure that the stock can only go up, up, up, until enough of it is in retail hands at which point it can find its fair value, somewhere in the neighborhood of zero.
