US Treasury received $489.9 million in proceeds from the sale of shares in GM

Article by Christian A., on March 14, 2013

The U.S. Treasury had raised $489.9 million in proceeds from the sale of General Motors’ common shares in February. The U.S. is in the process of exiting its ownership stake in GM. These trading results were revealed by the government last Monday in its monthly report to Congress with regards to the Troubled Asset Relief Program’s status.

For the month of January, the Treasury got $156.4 million from the sales of GM shares. The report said that as soon as every pre-arranged trading plan is completed, the number of GM shares sold and average price per share will be announced. GM got the biggest share of the industry bailout initiated by President Barack Obama with an investment of $50 million. Many Republic officials had criticized the investment, which led to GM being tagged as “Government Motors.”

CEO Dan Akerson hopes to someday shed off this image. Matthew Stover, an analyst with Guggenheim Securities LLC in Boston, which has rated the shares as neutral, said that GM’s story is “moving.” Stover said that GM has to continue to expand and move past the crisis period. He said that what’s apparent from the information coming out is that the government is leaving the business.

Last December, GM bought 200 million of its shares for $5.5 billion from the Treasury, making the government one step nearer to concluding the auto bailout. The Treasury had held around 300 million shares, or 19% on a fully diluted basis, after this transaction.

The Treasury has plans to sell all of its holding within 15 months. From Dec. 18 until Monday, GM shares have risen by 11%. This is the day before the company unveiled the share purchase from Treasury. During this period, the Standard & Poor's 500 Index increased 7.6%.

Topics: us treasury, gm, shares

If you liked the article, share on:

Comments

Recommended

Are you a big fan of legendary boxer Mike Tyson, the former heavyweight world champion? Or are you a big fan of the iconic Ferrari F50? Either way, you will...
by - February 24, 2017
It seems that AM-RB 001 hypercar is not the only vehicle project that Aston Martin and Red Bull Racing has gone into. This time, don’t expect something as outlandish as...
by - February 24, 2017
The year 2018 marks the golden anniversary of Subaru of America. Of course, the company will celebrate 50 years of being at the helm of the brand’s crusade in North...
by - February 24, 2017
During car crashes and accidents, there are times that its occupants can’t get out easily. There are times when the only way to get out of that situation is to...
by - February 23, 2017
Could this be a special version of Ferrari’s much acclaimed LaFerrari? No matter how we look at it, the patent images for this sports car from Ferrari indicate its striking...
by - February 23, 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