US Treasury announced it had sold in June almost $2 billion GM stock, diagnosis as it has reduced the forecast of losses on the $85 billion bailout to around $17.9 billion.
As GM’s stock price increased the US Treasury losses forecast dropped almost $2.5 billion since the beginning of the year. Last month the government sold 58 million and 60 million GM shares, reducing its stake to around 160 million shares. The US Treasury, which initially owned 61% of GM, was having 500.1 million GM shares back in December.
If the Treasury will be able to keep the current selling pace, it could exit GM by the end of the year. At the beginning of June the government priced 30 million shares at $34.41, with 3 cents under GM’s closing price at that time, reaching a total of $1.03 billion. At the end of June it had sold another 28 million to 30 million shares, but the price has not been revealed. Last month the US automaker’s shares traded between $31.42 and $35.03.
With these latest sales the US Treasury has managed to take back $33.35 billion on the $49.5 billion bailout. During the first three months of the year the Treasury had sold almost 20% the rest of the stake, not included the 200 million shares sold for $5.5 billion to GM in December.
Source: The Detroit News