April 18 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
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
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
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)