In a sign of the changing fortunes of the world's top two economies, China's biggest auto maker, SAIC Motor Corp., is negotiating to acquire a stake of about 1% in General Motors Co. worth about $500 million, according to a person familiar with the matter.
The U.S. auto maker also is prepared to sell more than $1 billion worth of shares to sovereign wealth funds in the Middle East and Asia. Combined, the sales would give foreign investors roughly 16% of the shares to be sold next week under an initial public offering of stock, and give them a stake of some 4% in the Detroit auto maker. GM declined to comment on the investment talks
With a $2B profit last quarter GM should start to pay back the US taxpayers for bailing them out.The auto maker this week reported a $2 billion profit for the third quarter and said it is on track for its first profitable year since 2004, bolstering the company's prospects on Wall Street.