CHICAGO General Motors Co. will purchase 200 million
shares of GM common stock held by the U.S. Department of the
Treasury for $5.5 billion, or $27.50 per share, it said
Wednesday, noting that the transaction will close by
The share buyback is part of the Treasurys plan to fully
exit its entire holdingwhich stands at 500.1 million
sharesof GM stock within 12 to 15 months, subject to
market conditions. The Treasury intends to begin its
disposition of its remaining shares as soon as January,
consistent with a pre-arranged written trading plan, it said.
The move is part of the agencys continuing efforts to
wind down its investments in the Troubled Asset Relief Program
The auto industry rescue helped save more than a million
jobs during a severe economic crisis, but TARP was always meant
to be a temporary, emergency program. The government should not
own stakes in private companies for an indefinite period of
time, Timothy G. Massad, the Treasurys assistant
secretary for financial stability, said.
In 2008 and 2009, the agency invested $49.5 billion to help
stabilize and restructure GM. Including GMs current stock
purchase from the Treasury, the government has recovered more
than $28.7 billion of that initial investment.
The share purchase will help to further remove the
perception of government ownership of GM among customers, and
demonstrates confidence in GMs progress, Dan
Akerson, the Detroit-based automakers chairman and chief
executive officer, said Wednesday.
The industry in general, and GM in particular, have rebounded
sharply since the rescue. Since 2008, GM has outlined
investments or spent $7.3 billion in the United States and
created or retained more than 20,000 jobs.