Treasury Sets Plan to Sell Last Shares of GM
The White House administration took another step in its plan to shed its ownership in General Motors. A plan was initiated to sell the 300 million shares it has remaining in the Detroit-based automaker.
The U.S. Treasury last month sold nearly 200 million common stock shares back to the automaker and has now announced its plan to shed its remaining stock over the coming months. The government, at this time, owns a stake of 19% in GM.
The Department of the Treasury announced this past week it would use Citigroup Global Markets and JPMorgan Securities to help sell the remaining stock it has in GM. The White House administration’s plan is to divest itself of all remaining investment in the automaker over the next 13 to 15 months.
The Obama administration took a big stake in General Motors, when it bailed out the automaker to the tune of more than $49.5 billion. It is not known how much taxpayers will lose in the deal. The sale last month of over 200 million shares was valued at $27.50 per share. That was a premium to what the market price was and was worth $5.5 billion, but even if all remaining shares were to be sold at that same price, it would produce an overall loss of more than $12.5 billion on the investment.
However, GM has traded above that price recently, as it was close to $29 per share as of Friday afternoon and if the share price continues to increase it, means the Treasury will end up losing less.