US speeds up GM exit plan

The Treasury Department says it plans to unload 30 million shares through a public offering.

By MSN Money Partner Jun 5, 2013 3:58PM

General Motors World Headquarters and Renaissance Center on August 17, 2010 in Detroit, Mich. (© Bill Pugliano/Getty Images)Fox BusinessBy Matt Egan

In a vote of confidence from the U.S. government, the Treasury Department unveiled plans on Wednesday to accelerate the sale of its remaining U.S. stake in bailed-out auto maker General Motors (GM).


Shares of the No. 1 U.S. auto maker retreated just slightly on the move, which could pressure the stock price by flooding the market with supply.


The Treasury Department said it plans to unload 30 million GM shares through a public offering. Additionally, the retiree trust run by the United Auto Workers plans to sell 20 million GM shares, the government said.


The transaction is timed to coincide with the inclusion of GM in the S&P 500 after the close of trading on Thursday, a selection that could increase demand for the auto maker's stock.


The share sale comes as the U.S. continues to exit its ownership position in GM, which received a $50 billion bailout during the financial crisis to help it emerge from bankruptcy proceedings.


In December, GM bought back 200 million shares of its common stock from the Treasury Department, which simultaneously said it would sell off its remaining 300 million shares and fully exit its position in the next 12-15 months.


Shares of Detroit-based GM dipped 0.09% to $34.93 in early trading on Wednesday. They have rallied about 21% so far this year, outperforming the broader markets.


The latest share sale is being run by Citigroup (C), J.P. Morgan Chase (JPM) and Morgan Stanley (MS).


The GM sale is part of the government's efforts to wind down its controversial bailout fund known as TARP, or the Troubled Asset Relief Program. The Treasury Department said it has recovered about $398.15 billion of disbursed funds, or almost 95%, so far.


More from Fox Business

Jun 5, 2013 5:08PM
NO ONE SHOULD EVER BUY GM STOCK!  I owned 5,000 shares and then they "went bankrupt" and I got NOTHING!  They have survived to scam others.  Their products are worthless, too!
Jun 6, 2013 9:46AM

Doesn't the stock price need to be in the mid to upper 50.00 range for the government to recoup all the TARP money?

Jun 6, 2013 10:15AM
GettingReal489, I keep an old GM bond so I never forget that I was cheated so the UAW could keep supporting Democrats.

Law no longer rules, but socialist scum seem to.

I will never buy a GM product again.  If others want to buy overpriced, shoddy UAW assembled Mexican parts, let them.  

Just say NO to GM.
Jun 6, 2013 10:41AM
Sorry to hear you are bitter, Mirage....Don't let it eat you alive...The Sun is shining somewhere..??
Jun 6, 2013 10:06AM

Guess that is what some have said....?


But the MORE IMPORTANT factor is the Governement has RECOUPED about 95% of the TARP MONIES laid out.....B-4 this sale of Stock....


That is not just GM loans, but overall I think on all...??


THAT IS A GOOD THING........Don't sweat the smaller trivial side stories..

We should be living for the Bigger Picture, of what has been accomplished..

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