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
Obama Chides House GOP for Pursuing Lawsuit New Bill Aims to Curb Sexual Assault on Campus Russia Counts Cost of New US, EU Sanctions 3Doodler Bring 3-D Printing to Your Hand Six PA Cops Indicted for Robbing Drug Dealers Britain Testing Driverless Cars on Roadways Raw: Thousands Flocking to German Crop Circle At Least 20 Chikungunya Cases in New Jersey Raw: Obama Eats Ribs in Kansas City In Virginia, the Rise of a New Space Coast Raw: Otters Enjoy Water Slides at Japan Zoo NCAA Settles Head-injury Suit, Will Change Rules Raw: Japanese Soldiers Storm Beach in Exercises Raw: Weapons Fire Hits UN School in Gaza Raw: Rocket Launches Into Space With Cargo Ship Broken Water Main Floods UCLA Two Women Narrowly Avoid Being Hit by Train Crayola Announces Family Attraction in Orlando
Hyperlocal Search
Premier Guide
Find a business

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