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AIG, GM taxpayer paybacks hit snag
Insurance giant, car maker face lower valuation of IPOs

SAN FRANCISCO (MarketWatch) — Taxpayers may have to wait even longer to be made whole on their investments in insurance giant American International Group Inc. and car maker General Motors Co.

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As for GM (GM 0.00, 0.00, 0.00%) , challenging market conditions and a difficult long-term strategy may reduce the company’s post-IPO market value to $60 billion from $70 billion, according to the Financial Times.

The U.S. government, which intends to reduce its stake in GM to less than 50% from 61% with the IPO, would see the total sale price of its common shares fall to a range of $7 billion to $8 billion, from an earlier expectation of $12 billion.

From there, investors will look for subsequent share sales over the next three years to increase the government’s average exit price.

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