GM unveils plans for major stock offering

The automaker said it planned to list the shares on the New York Stock Exchange and the Toronto Stock Exchange in an initial public offering that comes amid a still-weak global market for cars that is vulnerable to a further downturn.

The Obama administration wants to be able to cast its $50bn GM bailout as a financial success in the face of public scepticism and Republican political opposition but some analysts are still wary of the offering.

GM's IPO could be the biggest since Visa's $19.7bn March 2008 offering, and could raise up to $20bn, though analysts cautioned that its size depends on still-untested investor demand for a restructured automaker with only two consecutive quarters of profits.

GM's initial filing with US securities regulators did not say how many shares would be sold or give an expected price range for the IPO.

"We're looking at a second half that is potentially weaker than the first half," said Dennis Virag, president of Automotive Consulting Group.

"That could certainly hurt the sale of the shares.

"I don't think this is a good time to be going public. It's more political than practical."

Trading in GM shares is expected to start between late October and the US Thanksgiving holiday on November 25, according to those involved in the process.

A stock offering in late October would mean trading would start just before the November congressional elections.

Government officials and GM executives have repeatedly denied any link with the elections.