initial public offerings (IPOs) trading on American exchanges

Wednesday, January 26, 2011

Ally Financial Said to Interview Banks to Manage IPO

(Bloomberg) -- Ally Financial Inc., the auto lender majority owned by the U.S. government, is interviewing investment banks this week to manage its initial public offering, said two people with knowledge of the matter.

Ally asked for proposals last week and is likely to select four underwriters, though the final decision hasn’t been made, said one of the people, who declined to be identified because the talks are private. The size of the IPO hasn’t been decided and will depend on valuation, the person said.

The U.S. Treasury Department, which owns 73.8 percent of Detroit-based Ally, will play a large role in deciding the size and may sell its entire stake if the valuation is high enough, one of the people said.

Ally spokeswoman Gina Proia declined to comment. CNBC reported the development earlier today.

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