Countrywide is at $3B! XM and SIRI merger at $6B with 2K employees with GM with 250K employees! GOOG at $166B. GOOG could buy out GM and convert all plants to server farms with massive state subsidies and their stock wouldn’t move.
I thing GM can raise short term convertible offering (they had one GMX) that expired last year. That should keep them afloat without tanking common shares (?) till oil prices go down and they can retool for smaller models. After Chrysler debacle, private equity probably wont touch takeover, maybe high yield debt. Or Toyota could just buy out GM, save many jobs but that wont happen.
However, check this out:
Cramer: GM Should File for Bankruptcy
“First, we have to stipulate two things: GM has tremendous value if it can break all of its contracts, stop paying the coupon debts and eliminate the dividend.
But there is one problem — you can’t do that, you can’t make the critical changes, unless the company files for bankruptcy.
I rack my brain trying to figure out how they can raise enough money to not run out of money. The only way they can do it is to sell hundreds of millions of shares of common stock and simultaneously eliminate the dividend. That will buy them time, but buy them time for what? For the next offering?”
