GM to Buy Back $5.5-Billion in Shares from US Treasury
The US Treasury holds some 500 million shares in total, so they will still be left with 300 million shares, which equate to roughly a 19% stake. The rest of the shares will be sold off through other means in the coming months, as the US Government begins its quest to rid itself of GM altogether - an action which is set to be completed within the next 12 to 15 months.
Treasury officials say that they invested a total of $49.5 billion in 2008 and 2009, to get control of GM, and following the latest news, they have regained more than $28.7 billion. Still, the deal could have been sweeter, as the break-even point is usually set around the $50 per share price, yet the price they ended up with now still benefits both parties.