Christmas Gift? Treasury To Sell 40% of Shares Back To GM At Substantial Loss - Total Exit In 2013

The Obama administration said Wednesday it will sell 40 percent of its remaining stake in General Motors Co. back to the automaker — and said it plans to completely exit the Detroit automaker by March 2014.

The Detroit automaker said it will purchase 200 million shares of GM stock held by Treasury for $5.5 billion — or $27.50 per share — nearly $2 above the stock's closing price on Tuesday.

The U.S. Treasury — after more than a year of refusing to say when it might start selling its remaining stake in GM — said it will announce a written plan in January to shed its remaining 300 million shares over the next 12 to 15 months - likely a series of small stock sales.

The exit plan may prove to be a boost to GM's lagging stock price and to some car buyers, who have avoided GM because of the "Government Motors" label.

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Agent009 - 12/19/2012 11:00:45 AM

+5 Boost

Last time I look the selling price would have to be $53 a share for the Treasury to break even on the bailout.

By contrast Chrysler paid the majority back with a minor loss to the Treasury.

LexSucks - 12/19/2012 11:37:07 AM

-1 Boost

009, How did that "one-term" thing work out for you?

Lexus - 12/19/2012 11:47:14 AM

+6 Boost

Hey checkout this really cool linke ; )

http://www.insideline.com/hyundai/veloster/2012/2012-hyundai-veloster-recalled-because-sunroof-may-shatter.html

I wonder why autospies has not posted an article about this yet. If it was Toyota we probably have 10 posts about it by now.

Lexus - 12/19/2012 12:27:43 PM

+1 Boost

@marykeana,

are you sure this is Not Hyundaispies, Kiaspies or BMWspies? JK, : ) LOL.... Oh I forget it's autospies

HughJass - 12/19/2012 2:42:50 PM

+1 Boost

Good job Ohio/Indiana.

I'm going to incorporate m company and do an IPO to Obama, then buy back the shares at a fraction of what the government pays me. Sounds like a solid business plan, who's in?

Agent009 - 12/19/2012 3:31:49 PM

+1 Boost

In proper retrospect Bush started this all of this in motion with the first "loan" / gift.

The biggest problem to me was the Fiat took responsibility of the issue and paid bad all but a billion or so. GM on the surface was raking in money didn't seem take that responsibility or sense of urgency. They were content to let it ride.

skytop - 12/24/2012 10:18:49 PM

+1 Boost

Spending vast amounts of money and losing vast sums of money is what odumbo and the liberals do best.
You are living through the collapse of America.

skytop - 12/25/2012 11:14:36 PM

+1 Boost

Why shouldn't the liar and thief in chief leave the American taxpayer on the hook for 40 billion dollars. odumbo despises America and is doing everything possible to collapse this country. You are witnessing this destruction of our nation and you are doing nothing.