SAN FRANCISCO (MarketWatch) — General Motors Co. said Thursday that the Treasury’s ownership of Citigroup shares poses a conflict of interest in its pending initial public offering. GM noted that the Treasury owns about 3.6 billion of Citi’s common stock, equivalent to a 12.4% stake of outstanding shares, which constitutes a conflict under FINRA regulations. Therefore, Citigroup Global Markets Inc. will not sell shares to discretionary accounts without the prior consent of the client, the automaker said in a regulatory filing. GM is expected to offer its shares publicly in November as part of the process for the government to unwind its stake in the automaker. GM has not specified the exact amount of shares or a price range as of yet.
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