U.S. Government To Sell All GM Stock

Within the next 12-15 months, you won’t have "Government Motors" to kick around anymore — the federal government and GM have announced a plan for the U.S. to begin selling its remaining stake in the automaker, starting today with a sale of 200 million shares back to GM.

The company will buy 40% of the remaining shares held by the government for $27.50, or about $2 above the current market price for GM stock, costing it a total of $5.5 billion. The Treasury Department will then begin an orderly public sale of the remaining 300 million shares beginning in January 2013, with the goal of totally exiting its ownership of GM by March 2014. The stock sale today will leave the Treasury with a roughly 19% overall stake in the company.

"This announcement is an important step in bringing closure to the successful auto industry rescue; it further removes the perception of government ownership of GM among customers, and it demonstrates confidence in GM's progress and our future," GM Chairman and CEO Dan Akerson said in a statement.

This would bring to an end the government's involvement in the bankruptcy and bailout of the U.S. automakers, an issue that has weighed on the minds of some car shoppers who have avoided GM due to objections over taxpayer money being used to fund its bankruptcy. The announcement today confirms that the government is not going to recoup its total investment in GM — for that, the stock price would have to be $53 a share or more — but for many the end result of tens of thousands of jobs preserved throughout the country during the greatest economic crisis of the past 80 years is worth the loss in taxpayer dollars.

Related
Treasury: Auto Bailout Will Cost $34 Billion More
GM Thanks Public for Bailout in Holiday Ad
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Comments 

Dan

Thank you USA...
It was well worth it.

Paul

Only an idiot thinks losing $27.4 BILLION dollars is good. And that's assuming the Gov can sell the GM stock at $32 or higher in the next 15 months. Most experts believe that's highly unlikely to happen.
US Taxpayers lost $1.5 Billion on the Chrysler bailout so the GM bailout is utterly disgusting. I will never buy a GM product.

D

We will never buy another GM product after the way GM screwed Saab.

AO

I feel that GMC has done a lot of good for this country, as much good as it has done BAD for this country too.

D

Wonder why the stock will be sold after the election? Was it to continue the fantasy that GM paid back everything to the taxpayers?

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