News in brief: General Motors convertible sale is third largest

General Motors, the US auto manufacturer, has increased its convertible bonds issue from $2.5bn (€2.9bn) to $3.3bn, the third largest ever.

The Detroit-based motor company received $12bn of bids for its bonds. One analyst said: &quotThe deal was upsized because it was priced right, and so people bought it.&quot GM sold in two parts - one to appeal to investors confident of a rise in GM's share price, and one for the more wary. Of the bonds, $1.0bn had a 4.5% coupon, or interest rate, and a premium of 32.5%. The remaining $2.3bn had a coupon of 5.25% and 22.5% premium. Merrill Lynch and Morgan Stanley led the deal, which follows a $2.5bn convertible from Ford and a $2.5bn exchangeable issue from Fiat in December 2001.

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