GM shares drop to near IPO price of $33
DETROIT (Reuters) - Investors' concerns about ongoing turmoil at General Motors Co, linked to the deaths of at least 13 people, could push the automaker's shares below GM's $33 IPO price for the first time since last June.
GM shares on Thursday fell 32 cents, or 1 percent, to $33.30. The stock last dropped below $33 on June 28 last year.
GM went through bankruptcy in 2009 and a took a $49.5 billion bailout mainly funded by U.S. taxpayers, and returned to the New York Stock Exchange in November 2010.
The Detroit-based company's shares hit a high of $41.85 on December 17, 2013, the week after the federal government sold the last of its stake in GM. Since that day, they have fallen 20 percent.
Most of that loss came before February 13 when GM announced the first recall related to defective ignition switches. Its shares closed at $35.20 that day.
GM has since raised the number of recalled vehicles to 2.6 million, most of them in the United States. The recalled vehicles are all small cars that GM no longer produces.
The largest single-day drop in GM stock, of almost $2, came on March 11, when it was reported that federal prosecutors were examining whether the company was criminally liable for failing to properly disclose the ignition switch defects.
GM on Thursday raised the charge it will take for recall-related expenses to about $1.3 billion from a previously announced $750 million.
(Reporting by Bernie Woodall; Editing by Ken Wills)
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