Steve Rattner, who oversaw President Obama’s auto industry bailout, told Bloomberg News that GM’s Initial Public Offering share price was undervalued.
‚ÄúThere is definitely a greater level of confidence in the ability of the carmakers to perform,‚ÄĚ Rattner said at an Automotive Press Association event in Detroit. ‚ÄúThat‚Äôs because of the profit numbers.‚ÄĚ
According to Bloomberg sources, GM is expecting to be able to sell shares for over $30 each, with Rattner claiming that $35 to $40 a share is expected.
Rattner also criticised GM’s managment structure, stating that the roles of CEO and President must be separated, as GM’s rotation of four CEOs in 18 months reflected poorly on the company.