This is probably the biggest non-Bakken business story of the last ten minutes: The
US government will sell 200 million shares of GM at $27. This means the government
would have to sell its remaining shares at an average price of $69.72 to
break even.
The Obama administration said Wednesday it will sell 200 million shares — or 40 percent of its remaining stake in General Motors Co. — back to
the automaker and announced 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. GM shares jumped sharply on the news and were up 6.7
percent to $27.10, or $1.59.
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 in a
series of small stock sales.
The Treasury's move is intended to minimize the impact of the stock sale on the share price.
The
exit plan may prove to be a boost to GM's lagging stock price and to
some car buyers, who have avoided GM because of the "Government Motors"
label.
Yup. I assume 47% of the US population does not care. Americans are content/satisfied.
*****************
Wow, tell me it's not true.
Sam Donaldson arrested for DUI.
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