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%.