The United States Treasury Department will divest 30 million additional shares of General Motors Co. common stock in a stock offering. The share sale will also include 20 million shares from the UAW union's GM retiree health-care trust. GM’s share sale coincides with its return to the Standard & Poor's 500 Index on June 6, 2013, the Treasury said in a statement.
The department’s share offering plan is in line with an announcement made in December 2012 that it would sell its remaining GM stake in 12 to 15 months. The Treasury still holds around 241.7 million shares, or nearly 18 percent, of common GM shares, Reuters said. According to a statement by S&P Dow Jones Indices LLC, GM is replacing H.J. Heinz Co., which will be acquired by Berkshire Hathaway Inc. and other investors in a $23 billion buyout.
GM had been in the S&P 500 since the index was formed in 1957, until it was kicked out in 2009 due to its financial collapse that year. GM Chief Financial Officer Dan Ammann said in a statement that they appreciate the opportunity to assist in the share offering that was made possible by the carmaker’s return to the S&P 500.
Ammann remarked that their focus is on continuing the progress they are “making in the marketplace." Citigroup Inc., JPMorgan Chase & Co. and Morgan Stanley are acting as the joint book-running managers of the proposed offering, the Treasury said. [source: Bloomberg]