U.S. Treasury Revs Up GM Exit by Selling More Shares | Edmunds.com
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U.S. Treasury Revs Up GM Exit by Selling More Shares


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Just the Facts:
  • The U.S. Treasury Department will sell 30 million additional shares of General Motors common stock as the government continues to wind down its involvement with the Detroit automaker.
  • The Treasury Department said Wednesday it will sell the shares in a public offering in conjunction with GM's inclusion to the Standard & Poor's 500 Index on Thursday.
  • The UAW Retiree Medical Benefits Trust will also participate in the proposed offering by selling 20 million shares, making the total offering size 50 million shares.

WASHINGTON — The U.S. Treasury Department will sell 30 million additional shares of General Motors common stock as the government continues to wind down its involvement with the Detroit automaker.

The Treasury Department said Wednesday it will sell the shares in a public offering in conjunction with GM's inclusion to the Standard & Poor's 500 Index on Thursday.

The UAW Retiree Medical Benefits Trust will also participate in the proposed offering by selling 20 million shares, making the total offering size 50 million shares.

When GM rejoins the S&P Index after the close of trading on Thursday, it will mark a major milestone for the company since it filed for bankruptcy reorganization in 2009. The automaker was part of a federal financial bailout known as the Troubled Asset Relief Program and was nicknamed "Government Motors" by some critics.

"Treasury's sale of its GM common stock is part of its continuing efforts to wind down the Troubled Asset Relief Program," the government said in a statement on Wednesday.

The Treasury has said it will conclude its exit of GM by early 2014. The federal government still owns approximately 18 percent of GM common stock.

Edmunds says: Another positive step that signals the end of the government's involvement with General Motors.

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