You don't see a lot of Detroit Iron cruising the roads from Wall Street to the Hamptons or Westchester, but that may soon change.
General Motors Co. wants the banks that lead its initial public offering to use some of the fees to subsidize GM cars for employees, according to Bloomberg News, which cited a to a two-page document obtained by the news organization.
According to the Bloomberg story, GM asked banks to pitch "ideas as to how we can use the IPO to reposition GM and its vehicles within the investment community including your firm's willingness to reinvest any portion of any underwriting fees into the purchase of GM vehicles for your employees and/or company use."
It would be a first in the world of IPO fees, which are normally something in the range of 3 per cent to 7 per cent of the deal value in cash. But GM has a lot of leverage, given that the IPO could be the second largest ever at as much as $15-billion (U.S.)
The car maker managed to get the fees down to 0.75 per cent of the sale, a fraction of the usual tab.
JPMorgan Chase & Co. and Morgan Stanley won the deal after agreeing to those terms.
No word on whether they agreed to the request for car purchases, but if Jamie Dimon starts showing up to the office in an Impala, I guess we'll know.
Here's a link to the Bloomberg story.
(Maybe we're being too hard on the Impala. According to a review on GM's website, "Impala Will Thoroughly Meet Your Needs And Probably Exceed Your Expectations.")Report Typo/Error