Nader Wants To Suspend GM IPO

Ralph Nader and consumer groups say taxpayers could lose billions in the deal and the government would be better off holding onto the stock for a longer period.

WASHINGTON (AP) -- Ralph Nader and consumer groups want the Obama administration to suspend General Motors' initial public stock offering.

They say taxpayers could lose billions of dollars in the deal and the government would be better off holding onto the stock for a longer period.

Nader, the former presidential candidate and longtime auto industry critic, estimates taxpayers could lose nearly $5 billion with the initial public offering. He says the government would have less influence over the company by reducing its ownership stake.

GM is moving ahead with a public offering expected to raise about $10 billion.

The government, the largest owner, is expected to reduce its stake in the company from 61 percent to just over 40 percent.

The stock sale is expected to occur Nov. 18.

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