Skip to comments.Canada sells part of its GM stake for about $1.1 billon
Posted on 09/10/2013 5:38:18 PM PDT by Oldeconomybuyer
The Canadian government said on Tuesday it had a deal to sell nearly a quarter of its common shares in General Motors Corp (GM.N), part of a longer-term plan to shed the stake it acquired when it helped bail out the automaker.
It said the shares were sold at the closing market price on Tuesday, minus a small discount. GM shares finished the session at $37, putting the value of the stake at about $1.11 billion.
The governments of Canada and the province of Ontario, the heartland of the country's auto sector, became shareholders of GM in 2009 when they together contributed more than C$10 billion ($9.66 billion) to a bailout to keep GM afloat.
(Excerpt) Read more at reuters.com ...
You've heard of the Obamaphone right? Well that is ObamaMath... :-) Maybe the Canadian's can get it from der stash..
Adjust to inflation and hyper money printing inflation...they sold it for a couple of large slurpees...
What happens to people after they achieve elective office?
With the Chevy Volt and Spark such huge successes? They’ll be sorry!
Never heed investment advice from a man who has spent his entire life sucking on the public teat.
Or one who thinks an "investment" is redistributing taxpayer money to his pals in sweetheart deals.
Cash proceeds on sale $1.1b. Market value of the part retained about $4.4b (based on the part sold). They turned $10b into $5.5b, which is a pretty good return on investment for the government .
It’s not quite that bad- Ottawa’s share was roughly $6.6 billion (Ontario ponied up the rest), so the loss is about $1.7 billion.
Ottawa was reluctant to buy into GM but had no choice; if they did nothing while the US government was bailing them out, there would be a real risk of GM moving their operations to the US.
See post #8.
Canada sold the shares to Bank of America Merrill Lynch and RBC Capital Markets, a unit of Royal Bank of Canada. Canada still holds over 110m shares of common stock and over 16m preferred shares. So, the headline appears to be misleading. If Canada held 140m common shares and sold 30m, that’s 21.5%, not “a quarter” (25%). But even if the 16m preferred shares are included in the $10b bailout, it still sounds like Canada is taking a beating. However, I think they are getting out while they can recover a tidy sum as opposed to pennies on the dollar - - or nothing at all. This sale is a good move on Canada’s part. They promise to dump the rest as soon as they can find some mnore suckers.