logo
Share SHARE
FONT-SIZE Plus   Neg

Treasury Sells $489.9 Mln Of GM Stock In February

U.S. Treasury said Monday that it received net proceeds of around $489.9 million from the sales of General Motors Inc.'s (GM) common stock in February.

Treasury happened to own GM shares after the Automotive Industry Financing Program or AIFP was launched in December 2008 to prevent the uncontrolled liquidation of Chrysler and GM as well as the collapse of the U.S. auto industry. The potential for such a disruption at that time had posed a significant risk to financial market stability and threatened the overall economy.

Under AIFP, Treasury invested $49.5 billion to help stabilize and restructure GM. In November 2010, GM's completed an initial public offering. The IPO yielded $13.5 billion in net proceeds for Treasury and reduced its stake in GM to 500.1 million shares.

On December 19, 2012, as part of its efforts to wind down the Troubled Asset Relief Program or TARP, Treasury said it plans to fully exit its remaining investment in GM within the next 12-15 months. As part of that announcement, GM agreed to purchase 200 million shares of its stock from Treasury at $27.50 per share in a transaction that closed on December 21, 2012.

With the latest sale, Treasury has recovered around $29.8 billion of its investment in GM through repayments, sales of stock, dividends, interest, and other income.

GM closed up 1.1 percent on Monday at $28.31.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
TerraForm Global, Inc., an operator of clean energy power plants, said Monday that it has signed an exclusivity agreement with Brookfield Asset Management Inc. to negotiate a potential business combination between them. Shares of TerraForm Global are gaining more than 6 percent in pre-market activity following the announcement. Fast food giant McDonald's Corp. (MCD) on Monday reported a 1 percent decline in profit for the fourth quarter from last year on lower revenues due to the impact of refranchising. However, both revenue and earnings per share beat analysts' expectations. The Oak Brook, Illinois-based hamburger chain... U.S. authorities are investigating Yahoo Inc. for not disclosing the two massive data breaches sooner to investors, the Wall Street Journal reported, citing people familiar with the matter. It is expected that such a move could help clarify the timeline for companies to reveal such hacks.
comments powered by Disqus
Follow RTT