Fifty million shares of General Motors go on the block today, thirty million from the Treasury, twenty million from the UAW Retiree Medical Benefits Trust, in the hopes that the General’s return to the Standard & Poor’s 500 index (also today) will hype the price a bit.
Of the $49 billion taxpayers put up to bail out GM, almost $32 billion has been recovered; assuming a price in the low-to-mid-30s, the Treasury offering should bring in a billion more. Officially, Treasury plans to exit GM entirely by next April; it’s not likely they’ll break even, but the company may well be helped by losing the stigma of being “Government Motors” — at least in the States. Canada and the province of Ontario, which hold about 9 percent of GM stock, aren’t selling at this time.
Treasury, I have to figure, isn’t particularly thrilled by the fact that much of GM’s market momentum is being propelled by the arrival of new trucks, but I also figure that fiduciary responsibility trumps green posturing elsewhere in Washington. And if it doesn’t, well, it should.
(Via The Truth About Cars.)