Wednesday, November 12, 2008

DB: GM Shares worth $0

An analyst at Deutsche Bank has called shares of General Motors worthless, setting a price target of $0 as the auto giant faces the spectre of bankruptcy and a government bailout.

The company, which has been at the receiving end of a huge International recession in its key markets, needs $10-25 bn just to stay afloat and avoid bankruptcy. Even if it manages to avoid bankruptcy without a government bailout, it will be unable to manufacture anything. However, DB says that it is unlikely that anything but the Government can save the company.

Last week, GM and rival Ford Motors posted huge losses for the previous quarter. GM has fired thousands of employees and plans to fire more in order to avoid bankruptcy.

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