The US sales another third of remaining GM shares image

The Treasury announced t sold $1.2 billion in General Motors stock in October — or nearly one-third of its remaining shares — as the government plans to exit the Detroit automaker by the end of March, if not earlier.

In October, GM stock traded for around $35 to $36 a share, meaning the government sold about 29 million to 30 million shares. As of September, it had about 101 million shares remaining; so the latest sale leaves the Treasury will around 70 million shares. At current selling rates, the Treasury could completely exit sometime in January.

The Treasury has vowed to exit GM completely by March 31, but a GM buyback could speed the exit. Once the government exits, GM can again pay a dividend.

In December, GM bought back 200 million shares of stock from the Treasury for $5.5 billion. Since then, the Treasury has been selling around 20 million to 25 million shares a month of GM stock as it winds down its stake.

Untill now, the Treasury has booked a loss of $9.7 billion on its sale of 811 million of its 912 million shares it received as part of GM’s 2009 bankruptcy restructuring.