U.S. Treasury to sell 30 million more GM shares, UAW retiree trust fund plans to sell another 20 million shares
U.S. Treasury to sell 30 million more GM shares
UAW retiree trust fund plans to sell another 20 million shares
Automotive News | June 5, 2013 – 9:31 am EST
— UPDATED: 6/5/13 4:18 pm ET – adds closing stock price
WASHINGTON/DETROIT (Bloomberg) — The U.S. Treasury Department said it plans to sell 30 million additional shares of General Motors Co. common stock in an offering that will also include 20 million shares from the UAW union’s GM retiree health-care trust.
The offering coincides with the automaker’s inclusion in the Standard & Poor’s 500 Index as of the close of trading tomorrow, the Treasury said in a statement today. The U.S. had said in December that it would sell its remaining GM stake in 12 to 15 months. Today’s statement didn’t revise that timing.
The Treasury still owns about 241.7 million shares, or nearly 18 percent, of common GM shares, Reuters reported.
GM is replacing H.J. Heinz Co., which will be purchased by Warren Buffett’s Berkshire Hathaway Inc. and other investors in a $23 billion buyout, according to a statement this week by S&P Dow Jones Indices LLC. GM had been in the S&P 500 since the index was established in 1957 until its 2009 bankruptcy.
“We appreciate the opportunity to assist in this offering made possible by our rejoining the S&P 500,” GM Chief Financial Officer Dan Ammann said in a statement. “Our focus remains on continuing the progress we are making in the marketplace.”
GM closed today at $34.02 a share, down 2.7 percent, during a down day on Wall Street. The Dow Jones industrial average fell 1.4 percent to 14,961.
Before today, GM shares gained 21 percent this year, compared with a 14 percent increase for the Standard & Poor’s 500 Index.
Citigroup Inc., JPMorgan Chase & Co. and Morgan Stanley are acting as the joint book-running managers of the proposed offering, the Treasury said.