Skip to comments.GM stock lower amid report of quick govt sale
Posted on 04/20/2011 5:47:52 AM PDT by Red Badger
NEW YORK A report that the US government plans to sell off much of its remaining stake in General Motors this year despite the firm's lackluster share price caused investors to flee the stock Tuesday.
After the Wall Street Journal reported a government sale could come within the next six months, GM's shares fell by nearly 1.3 percent to end at $29.59.
The government sale would "almost certainly" mean that US taxpayers would take a loss from a politically controversial $50 billion rescue of the auto giant in 2009, according to the paper.
The government would need to sell its roughly 500 million shares for $53 dollars each in order to break even, but GM's stock is currently hovering at a price of just under $30 per share.
At the current price, the government would lose more than $11 billion, but the Obama administration is willing to accept the loss in order to cut its last ties to the auto manufacturer, the newspaper said, citing unnamed sources.
The summer sale would make it more likely that the government could unload the remainder of its shares before the 2012 election season.
But officials said planning is still at an early stage and the Treasury Department was still considering options that would protect taxpayers while ending its stake in the company as soon as practicable.
The paper added that GM would back the sell-off because it would lift restrictions on executive pay that remain in place as long as the government is part owner.
Marking its successful emergence from bankruptcy in July 2009, GM raised $23.1 billion last November in the largest public offering in history.
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Bo needs cash to buy votes!
Why not? It's not his money!
The first order of Business for our new congress should of been IMPEACHMENT over this whole GM Fiasco, They out and out STOLE it from the Bondholders and then Gave it all to the Unions, now We the People are supposed to pay all the Losses??
When will enough be enough???
But the unions got theirs... and will again work to re-elect Obarry.
As tax paying Americans we should boycott GM. Let them sell cars in China.
I predict that when the gov stops propping up this Jenga tower, they will crash again. Will Zero bail them out a second time? The underlying problems the caused the first crash are still there...........
Typical DemoRAT scam. By eliminating the GM deal, closing it out the DemoRATS will chide, denigrate any of their opposition mentioning the handling of GM, the failure to protect the taxpayer, etc. as a fool bringing up “old news”.
We’re going to hear a considerable amount of condescending verbosity about “old news” this coming election cycle.
Bo needs cash to buy votes!
BO needs this turkey off his hands before the TV
ads start running next summer.
Right, It’s not their money, they don’t CARE about how its spent, except to further their leftist goals
GM paid back everything with interest!
The Chairman said so on national TV.
< /sarcasm >
I hate, despise, and loathe GM.
Destroy them all...well, almost all.....
Keep the Corvette!
” At the current price, the government would lose more than $11 billion, but the Obama administration is willing to accept the loss in “
Boy, it’s a good thing that the Obama Gang isn’t in charge of my pension fund....
Oh - wait....
... and now steering wheels will quit falling off cars and golf carts
will no longer burn up in garages while charging ... maybe
DING, DING, DING, DING!
We have a winner!
Damn these idiots are total economic illiterates.