GM to Buy Back 200M Shares From Treasury
Move could speed up US exit from company
By Kevin Spak, Newser User
Posted Dec 19, 2012 8:27 AM CST
Chevrolet Silverado pickup trucks are seen on a dealer's lot in Troy, Mich., Dec. 17, 2012.   (AP Photo/Carlos Osorio)

(Newser) – General Motors will spend $5.5 billion to buy back 200 million of its own stock from the US government in the next two weeks, accelerating Uncle Sam's exit from the automaker, the company announced today. GM will pay $27.50 a share, a 7.9% premium on yesterday's closing price, the Wall Street Journal reports.

"We felt this transaction is attractive to the company, good for business, and good for selling more cars," GM's CFO said. "It moves us forward and eliminates a significant overhang on the stock." The Treasury will still own 300 million shares of GM common stock after the sale, or roughly 19% of outstanding shares. It intends to offload those shares over the next 12 to 15 months.

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Showing 3 of 35 comments
whattodo
Dec 23, 2012 12:58 AM CST
Just HOW WILL GMC ACTUALLY PAY FOR THESE SHARES? WHERE IS THE $5.5 BILLION COMING FROM?
RLM357
Dec 19, 2012 10:08 AM CST
WILL THAT PAY BACK OF THE TAXPAYER'S LOAN GO TO PAY DOWN THE NATIONAL DEBT OR BE SQUANDERED BY THIS ADMINISTRATION AS USUAL? (Oops caps lock) Also at what price? Not discounted, I hope. The Unions now own GM. ~Rick Magee, FL
saucier111
Dec 19, 2012 9:57 AM CST
If the government did not step in to help GM and Chrysler and they went bellyup, what would that of cost America.