U.S. Plans GM Share Sale In Summer

The U.S. Treasury Department will wait for General Motors Co. (GM)’s first-quarter earnings before deciding whether to sell more of its investment in the nation’s largest automaker, a person familiar with the matter said.

The government will be required to sell its remaining 500 million shares at $53 apiece in order to save U.S. taxpayers to take a loss on their $50 billion rescue of the Detroit auto maker in 2009.

The Treasury is unable to sell its holdings before May 22, due to a condition of the $23.1 billion IPO, which took place in November and reduced the U.S. government’s stake in GM from 61% to 26.5%.
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LauderdaleDriver - 4/20/2011 7:46:17 PM

+1 Boost

The price now could be low, anticipating some dilution from the continuing liquidation of the government's share.