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Sun 21 Nov 2010 03:26 PM

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Kuwait SWF said to have decided against GM investment

Automaker had raised more than $20bn in its IPO, US government now a minority shareholder

Kuwait SWF said to have decided against GM investment
PRICE RAISED: Kuwait Investment Authority decided against buying General Motors shares after the sale price was raised

Kuwait Investment Authority, the country’s sovereign wealth fund, decided against buying General Motors shares after the sale price was raised, according to a person familiar with the matter.

GM’s owners, including the US Treasury, sold shares at $33 each in an initial public offering on Nov 17. The automaker had filed with the Securities and Exchange Commission on Nov 3 to offer the shares for $26 to $29 each.

The company raised more than $20 billion in the IPO, which reduced the US government to a minority shareholder.

KIA’s Managing Director Bader al Saad said on Nov 6 that Kuwait would look into the IPO’s price range before deciding to buy shares in the automaker.

“If something is cheap, we are interested, of course,” al Saad said at the time.

Michael 8 years ago

Is it not time that the Gulf States invested in manufacturing in their own countries?
Long term developments in the region should be undertaken for future generations to be part of the developing world instead of constantly relying on the developing world.
Their poor neighbours are ahead of them in development yet they don't have the money.