The US Treasury Department announced it will begin another round of sales of GM’s stock.
After GM’s registration statement made in April, it would be easier for the Treasury to sell the rest of 241.7 million shares or 18% of GM’s common stock. Since the 2009 bailout GM has been trying to get rid of the “Government Motors” tag and it seems that the company is close to eliminating the stigma. After the automaker’s bailout the Treasury owned 60.8% of GM and after GM’s November 2010 IPO the Treasury’s stock dropped to 32%.
“We are pleased with the progress to date and will continue exiting this investment in accordance with our previously announced plan and timetable, and in a manner that maximizes returns for taxpayers, ” Tim Massad, Treasury assistant secretary for financial stability, said in a statement.
In December, after GM bought back 200 million shares, the Treasury announced it plans to fully exit the company in the following 12 to 15 months. By April the US government managed to recover $30.4 billion of the $49.5 billion used for GM’s bailout. Back in December, GM CEO Dan Akerson said that the Treasury’s exit “is an important step in bringing closure to the successful auto industry rescue,” and “further removes the perception of government ownership.”