Email loses UBS role as underwriter for General Motors IPO, reports claim

15 November 2010

An email sent by an analyst at UBS has allegedly led to the bank being dropped as underwriter to an initial public offering (IPO) by General Motors (GM).

According to newspaper reports, more than 100 clients were sent the message by an analyst at the bank.

Papers filed by GM with the Securities and Exchange Commission (SEC) revealed the details of the alleged leak.

Investors may be able to seek either a refund or damages if the email is considered to have broken laws surrounding IPOs put in place by the SEC.

In the filing, which was quoted by City AM, GM said: “We had no knowledge of the email until after it was sent, and the email does not reflect our views.”

GM is looking to raise up to $10 billion from the IPO as part of a bid to repay $50 billion worth of fiscal stimulus provided to the firm by the government during the financial crisis.

The IPO, which is being launched on November 18th, is expected to see the government’s share in GM reduced to approximately 40 per cent.

By Jim Ottewill

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