Government of Canada Sells Remaining Shares in General Motors to Goldman Sachs, Worth $2.7B

Yes, that’s a B in the title of the story. As it happens, the Government of Canada wants to get rid of its shares in post-bailout GM as soon as possible. Why does Canada need roughly $2.7 billion by April 10th?
GM HQ 1 photo
Photo: GM
According to Prime Minister Stephen Harper, the second-largest country by total area in the world wants to use the greenback to meet pre-election promises amid an oil rout, according to a report published by Bloomberg.

Those $2.7 billion will be sold to Goldman Sachs & Co.

The operation will be a block trade, with the transaction to be completed by April 10th. It’s interesting that Canada’s Minister of Finance Joe Oliver declared for the American publication in an e-mail statement that: “Our investment in GM was always meant to be temporary.” Nice wordplay there.

Rewind to when Canada chipped in $9.6 billion for the General Motors bailout effort. Now comfort that figure with the $2.7 billion the Canadians are selling nowadays. Numbers do not lie, so there you have the real reason Canada accepted Goldman Sachs block trade.

Even funnier is that the Government of Canada didn’t know that General Motors bailout would also restructure the company. Because of the whole Chapter 11 reorganization, GM parted ways with Hummer, Pontiac, Saturn and Saab too, brands that could’ve been made profitable with a bit of financial effort. Nevertheless, we also have to give Canada a round of applause.

Thanks to the efforts invested in the bailout, the country protected approximately 52,000 jobs in Canada’s automotive sector in the midst of a global recession. What will happen to those shares in Goldman Sachs’ hands, only time will tell. On an ending note, you may want to know that the US Government’s bailout aid left the United States Treasury with a $9.26 billion loss.

Editor's note: guess Government Motors is outdated then thanks to the private sector's helping hands.
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About the author: Mircea Panait
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After a 1:43 scale model of a Ferrari 250 GTO sparked Mircea's interest for cars when he was a kid, an early internship at Top Gear sealed his career path. He's most interested in muscle cars and American trucks, but he takes a passing interest in quirky kei cars as well.
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