Government selling off remaining GM stock

The U.S. government in January began selling its remaining shares of General Motors stock at a predetermined pace as previously announced, according to a Treasury Department report.

The Treasury Department sold $156.4 million in GM stock in January, when shares traded between about $28 and $30.

In December, the government agreed to sell the rest of its GM stock within 12 to 15 months after selling 200 million shares back to the automaker in a $5.5 billion deal.

The strategy is to sell shares regularly throughout the year to avoid disrupting the stock price.

The U.S. has recovered about $29 billion of its $49.5 billion bailout of GM, which used the money to navigate Chapter 11 bankruptcy in 2009.

To break even, the government would have to sell the rest of its shares at an average price of about $70, which is unlikely.


Posted by Tribune News Services

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