US Treasury has sold another block of GM shares

Article by Anita Panait, on September 20, 2013

The U.S. Department of the Treasury has disposed another portion of its holdings in General Motors Co. to trim its stake to 7.3%. The Treasury sold over 110 million shares between May 6 and Sept. 13, 2013 and has raised over $3.82 billion, according to documents posted online. The move is part of the Treasury’s exit plan announced in December 2012, when it said it would sell its entire stake in GM in 12 to 15 months.

The Treasury originally had a 60.8% stake in GM, which is now reduced to 101 million shares. Once the government has completed selling all its GM shares, it would have recovered about $35.4 billion of its investment in GM.

Treasury Assistant Secretary Timothy Massad said in a statement that the department is on track to complete its exit from GM by early next year “at a cost far less than originally projected.

GM shares closed Tuesday at $36.71, which means that the Treasury's remaining stake was valued at about $3.7 billion at the start of trading Wednesday and the department would lose around $10 billion on the bailout of GM.

Treasury officials have said that the US government will lose $15 billion on the $85-billion auto industry bailout that included Chrysler. Massad said the bailout was not intended to make a profit, but to save the American auto industry and around one million jobs.

Topics: us treasury, gm, shares

If you liked the article, share on:

Pin It

Comments

Recommended

Want to go for a sportier look, but don’t have enough cash to burn? Good news for future Ford Edge buyers, as the 2018 model year will have an optional...
by - March 28, 2017
Audi refreshes its portfolio as its go-faster division officially announces the release of six new RS models by the end of 2018. That’s quite a huge number of cars to...
by - March 28, 2017
Has Toyota started the production of a new electric supercharger? Well, a patent that was recently published indicated that they might have. And this electric supercharger looks more durable and...
by - March 27, 2017
The Tesla Model S has finally arrived in South Korean soil and is now available for test drive. But, there’s a catch. You’ll have to wait several months if you...
by - March 27, 2017
Sorry to say this to the Sport Quattro Concept fanatics. If you guys have been hoping for the production of this iconic concept to begin, prepare for your dreams to...
by - March 27, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries