Treasury announces GM exit strategy; automaker buying 200 million shares from U.S. [View all]

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Source: Detroit News

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 willannounce 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.

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"The government should not be in the business of owning stakes in private companies for an indefinite period of time," Assistant Treasury Secretary Tim Massad said. "Moving to exit our investment in GM within the next 12 to 15 months is consistent with our dual goals of winding down TARP as soon as practicable and protecting taxpayer interests."







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