CORRECTED-OFFICIAL-U.S. Treasury cuts stake in GM to 7.3 pct
(In 3rd paragraph, Treasury said original figure of $35.4 billion for amount recovered was correct. Also corrects total potential loss in 4th paragraph)
Sept 18 (Reuters) - The U.S. Treasury has sold another block of shares in General Motors Co, reducing its stake to 7.3 percent as it moves toward exiting its holdings in the automaker by the end of March.
The Treasury sold more than 110 million shares between May 6 and Sept. 13, raising more than $3.82 billion, according to documents posted online on Tuesday. The Treasury confirmed its stake in the No. 1 U.S. automaker now stands at 101 million shares.
The U.S. government, which originally took a 60.8 percent stake in GM as part of its $49.5 billion bailout of the company in 2009, said it had recovered about $35.4 billion of its investment. When it outlined its exit plan in December 2012, Treasury said it would sell all its GM shares in 12 to 15 months.
GM shares closed Tuesday at $36.71 on the New York Stock Exchange, so Treasury's remaining stake is worth about $3.7 billion. At that price, Treasury would end up losing about $10 billion on the bailout of GM.
Treasury officials have said the government will lose $15 billion on the $85 billion auto industry bailout that included Chrysler, but the intention was to save jobs not make a profit.
The U.S. taxpayer bailout led some critics to call the company "Government Motors" and executives said the stigma hurt sales some. GM Chief Executive Dan Akerson has said the exit of Treasury would bring closure to the bailout and remove the perception of government ownership among customers.
Analysts have speculated that once Treasury has fully exited its GM stake, the automaker may consider reinstating a dividend on common shares, something it has not paid since May 2008. GM executives have said they will focus on reinvesting in company operations.
The Canadian and Ontario governments on Sept. 10 said they would sell nearly a quarter of their common shares in GM as part of a longer term plan to exit stock acquired in the bailout. After raising $1.1 billion in that sale, the governments still hold more than 110 million shares. (Reporting by Ben Klayman in Detroit; Editing by Nick Zieminski)
- Housing, jobs data weaken, but overall economic picture still upbeat
- Target cyber breach hits 40 million payment cards at holiday peak |
- 'Duck Dynasty' anti-gay fallout sparks debate on religion, tolerance
- UPDATE 3-Saab wins Brazil jet deal after NSA spying sours Boeing bid
- Zuckerberg to sell Facebook shares worth about $2.3 billion |