As the US Treasury plans to sell its shares in GM, it chose JPMorgan Chase & Co. and Citigroup Inc. to manage the sale.
Yesterday, January 16th, the US Treasury Department announced on its website that it selected JPMorgan Chase & Co. and Citigroup Inc. to manage the sales of its shares in the biggest US automaker. Currently the Treasury has 300 million shares in the automaker, after it sold 200 million to GM for $5.5 billion in December, announcing that the rest of its 19% stake is to be sold within 15 months beginning with January.
Recently GM has announced its plans to end its European losses by 2015 and introduce 13 new Chevrolet models in 2013, trying to boost its share of the US market. In order to break even on the GM bailout, the US treasury will have to sell each share for more than $50.
“It’s real important for major firms to be major players and to be able to get customers the stock they want. If the customers are clamoring for getting GM at a good price, JPM and Citi will be able to do that, and that means those customers will use them for other services,” said Kip Weissman, a partner representing banks for Luse Gorman Pomerenk & Schick PC in Washington.