JUNE 11, 2010, 2:29 P.M. ET.

Morgan Stanley, J.P. Morgan to Lead GM IPO .

By AARON LUCCHETTI, DAN FITZPATRICK And SHARON TERLEP

Morgan Stanley and J.P. Morgan Chase & Co. are expected to win the lead underwriting roles for General Motors' initial public offering of stock, people familiar with the matter said Friday.

Nearly all of Wall Street's banks have been vying for the assignment, which could be one of the biggest underwriting deals of the last five years.

General Motors filed for bankruptcy protection just over one year ago, and quickly emerged from court protection with help from a $50 billion bailout from the U.S. government.

The U.S. now holds a 61% stake in GM, and is looking for ways to get repaid. An initial offering of GM shares could raise as much as $10 billion and help set a public valuation for the country's largest auto maker. The U.S. plans to sell off its remaining stake over time.

Handling the IPO assignment is something of a vanity project for the Wall Street banks, given the relatively small fees the banks will earn through the process. One person familiar with the offering said that the banks may earn less than 1% of the overall deal. At a valuation of $10 billion, that would equal a total fee pool of $100 million.

Write to Aaron Lucchetti at aaron.lucchetti@wsj.com and Sharon Terlep at sharon.terlep@wsj.com

http://online.wsj.com/article/SB1000142 ... 63768.html