GM to Buy Back 200 Million Government Shares

By • December 19, 2012 Comments

General Motors said Wednesday it will spend $5.5 billion to buy back 200 million shares of its stock from the government.

The U.S. Department of the Treasury in turn announced its intent to fully exit its remaining 300 million in GM stock starting in January, subject to market conditions.

Treasury currently holds 500.1 million shares of GM common stock. Treasury intends to exit that investment through the following means:

  • GM said it will purchase 200 million shares of common stock from Treasury at $27.50 per share.
  • This transaction is expected to close by the end of the year.

Treasury intends to sell its other remaining 300.1 million shares through various means in an orderly fashion within the next 12-15 months, subject to market conditions. The disposition of the additional 300.1 million common shares will begin as soon as January 2013 pursuant to a pre-arranged written trading plan.

The move may help to boost GM’s share price, however, if the government sells its shares at current prices, taxpayers would lose more than $13 billion.

© 2014 FedSmith Inc. All rights reserved. This copyrighted article may not be reproduced without express written consent of FedSmith Inc.

Tags:

About the Author (  |   )

Ian Smith is one of the co-founders of FedSmith.com. He enjoys writing about current topics that affect the federal workforce. Ian has worked in the web development field since 1998 and does the development and programming for the FedSmith.com web site and its sibling sites (FedsDataCenter.com and TSPDataCenter.com).

Comments

Free Email Updates

Sign up for our free email updates to get our latest news sent directly to your inbox
  • Our top stories sent each business day
  • More news from your FedSmith.com authors
  • The day's closing prices for the TSP funds
  • Videos for the federal workforce