TIMELINE-Key dates for Treasury sale of GM shares

April 18 Mon Apr 18, 2011 11:22pm EDT

April 18 (Reuters) - The U.S. Treasury could sell a significant portion of its remaining stock in automaker General Motors Co in the summer or fall, a source with knowledge of the situation said. No decisions have been made as to the timing or size of such a sale, two people said.[ID:nN18245924]

Here is a timeline with key dates:

April 21: Motors Liquidation Company is expected to distribute about 75 percent of the stock and warrants it owns in GM to the unsecured creditors whose claims have been allowed by court.

May: GM reports first-quarter earnings.

May 22: The lockup period GM's IPO expires. The earliest Treasury could begin the process of selling shares would be May 23. That would require another S-1 regulatory filing that would have to be vetted by the U.S. Securities and Exchange Commission. The commenting and amendment process would make June the earliest possible month for a follow-on share sale.

June 30: GM's second quarter ends. Investors would most likely want to see second-quarter earnings before committing to buying GM shares.

July 1: GM is eligible to file for an S-3 offering, which would allow Treasury to sell shares without having to address comments from the SEC.

August: GM reports second quarter earnings. With an S-3 filing, Treasury could sell shares immediately following its second-quarter earnings. Wall Street typically shuts down in the second half of August so any August share sale would likely be in the first half of the month.

September: Wall Street has historically remained shuttered through Labor Day. Treasury could potentially sell shares after Labor Day.

November or December: A lockup period after a follow-on offering is typically 90 days, shorter than the lockup period following an IPO. Treasury could potentially do another follow-on share sale in November or December.

Other key events: GM is expected to join the S&P 500 index . Such an inclusion would likely generate additional demand from portfolio managers who benchmark their holdings against the index. The U.S. Treasury might be able to sell additional shares based on this demand in what is known as an index inclusion trade. (Reporting by Clare Baldwin; Editing by Lincoln Feast)

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