Traverse City Record-Eagle

Business

April 11, 2013

Gov't sells $621M worth of GM stock

DETROIT (AP) — The government has sold another piece of its stake in General Motors Co.

The Treasury Department said in its March report to Congress that it sold $621 million worth of GM common stock last month.

The report dated Wednesday says the government has recovered about $30.4 billion of the $49.5 billion bailout it gave the Detroit automaker. That means taxpayers are still $19.1 billion in the hole.

The Treasury says the price per share will be revealed at a later date.

GM stock sold in a range of $26.75 to $29.30 in March. At the midpoint of $28, the government would have sold roughly 22.2 million shares.

That would leave it with about 255 million shares. Those would have to sell for around $75 each for the government to break even, more than double the current trading price. GM shares closed up 84 cents, or 3 percent, at $28.37 amid a broad market rally on Wednesday.

In January, the Treasury announced a plan to sell the shares by early 2014 and said that it hired JPMorgan Securities and Citigroup Global Markets to conduct the sale. The banks will get one cent for every share they sell, for a fee of up to $3 million.

When the government finally sells all of its shares, it will end a sad chapter in GM’s history. The company nearly ran out of cash in 2008 and needed government money to survive a trip through bankruptcy reorganization. Since then GM has posted 12 straight profitable quarters. Last year the company bought 200 million of its shares from the government for $5.5 billion.

GM shares sold for $33 each when they began publicly trading again in November, 2010. The shares rose shortly after the sale but fell dramatically early last year as the economy slowed and Europe headed toward recession. A strengthening U.S. economy and the stock buyback have pushed the shares higher.

 

 

1
Text Only

the BIZ

AP Video
Raw: Families Travel to Taiwan Plane Crash Site Arizona Execution Takes Almost Two Hours Gen. Odierno Discusses Ukraine, NATO at Forum Gaza Fighting Rages Amid Cease-Fire Efforts Mint Gives JFK Coin a Face-lift Creative Makeovers for Ugly Cellphone Towers Ariz. Inmate Dies 2 Hours After Execution Began Crash Kills Teen Pilot Seeking World Record LeBron James Sends Apology Treat to Neighbors Raw: Funeral for Man Who Died in NYPD Custody Migrants Back in Honduras After US Deports Israeli American Reservist Torn Over Return Raw: ISS Cargo Ship Launches in Kazakhstan Six Indicted in StubHub Hacking Scheme Former NTSB Official: FAA Ban 'prudent' EPA Gets Hip With Kardashian Tweet Bodies of MH17 Victims Arrive in the Netherlands Biden Decries Voting Restrictions in NAACP Talk Broncos Owner Steps Down Due to Alzheimer's US, UN Push Shuttle Diplomacy in Mideast
Hyperlocal Search
Premier Guide
Find a business

Walking Fingers
Maps, Menus, Store hours, Coupons, and more...
Premier Guide