GM May Buy Back Shares From Fed If Price Is Right

General Motors Co. could repurchase some of the Treasury’s roughly 100 million remaining shares in the Detroit automaker as the government nears an exit, an auto analyst said Thursday.

Barclays auto analyst Brian Johnson said there was “a strong indication” on GM’s earnings call this week that the automaker “will pursue a share buyback by the end of the year, and more broadly, that it is committed to returning cash to shareholders.”

“We expect GM to pursue a $2 billion to 2.5 billion share buyback between mid/late November,” he wrote in a research note, “and the end of the year, in which it cleans up the U.S. Treasury’s outstanding GM equity stake. A share buyback would not only benefit GM and the Treasury, but would also remove the selling pressure overhang.”




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randy3023 - 10/31/2013 4:19:41 PM

+1 Boost

A "$2 billion to 2.5 billion share buyback" is TOO SMALL.

There needs to be a 10-20% ACROSS-THE-BOARD pay cut for ALL GM employees and retirees in order to increase the size of this buyback to $3.5 billion.

It's absolutely insane and pathetic that the U.S. Government is a shareholder in this failed company.

HughJass - 11/1/2013 4:31:56 PM

+2 Boost

Doesn't GM need to pay about $75/share for us just to break even? Gee, thanks for buying our shares back for half price.