U.S. sells $877M in GM stock

August 12, 2013 at 7:42 pm
U.S. sells $877M in GM stock

David Shepardson
The Detroit News
The U.S. Treasury sold nearly $900 million in General Motors stock in July as it moves to exit its investment in the Detroit automaker by early 2014.

In a report to Congress on Monday, the Treasury said it sold $876.9 million in stock last month. GM stock traded between $34 and $37 a share in July. That indicates the government sold between 23 million and 26 million shares of its holdings.

Using those calculations means the government has 135 million to 137 million shares of GM stock remaining. At the current rate, it should take about six months for the government to exit. In total, the Treasury has recovered $34.6 billion of its $49.5 billion bailout of the automaker.

The U.S. Treasury Department, which initially held a 61 percent stake in GM as part of its $49.5 billion bailout, owned 500.1 million GM shares in December.

Details of the sale were released after markets closed Monday. GM stock fell 4 cents a share, or .1 percent, to $35.98.

Also Monday, the United Auto Workers health care trust officially closed on its sale of $171 million from the sale of warrants in GM it received as part of the automaker’s 2009 restructuring. The trust is selling 45.4 million warrants that allow the buyer to acquire shares of GM stock at $42.31 at any time before the end of 2015.

The offerings were priced at $3.85 per warrant, which lets the holder purchase one share.

From The Detroit News: http://www.detroitnews.com/article/20130812/AUTO0103/308120097#ixzz2btQ83Bna

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