(Corrects Treasury official Timothy Massad's name in 5th
By Ben Klayman
Dec 19 General Motors Co said on
Wednesday it will buy back 200 million of its shares from the
U.S. Treasury, which intends to sell the rest of its stake in
the company over the next 15 months, bringing to an end
ownership that led many to dub the automaker "Government
Chief Financial Officer Dan Ammann said GM will pay $5.5
billion, or $27.50 a share for the Treasury stake in a deal
expected to close by year end. Treasury said it will sell its
remaining stake of about 300.1 million shares "through various
means in an orderly fashion" over the next 12 to 15 months.
Treasury said it intends to begin its disposition of its
remaining shares as soon as January.
GM received about $50 billion from the U.S. Treasury as part
of its 2009 bankruptcy restructuring in 2009 under the Troubled
Asset Relief Program. The government bailed out GM and Chrysler
Group in a move to protect jobs, a number it put at more than 1
"TARP was always meant to be a temporary, emergency program.
The government should not be in the business of owning stakes in
private companies for an indefinite period of time," Assistant
Secretary for Financial Stability Timothy Massad said in a
statement. "Moving to exit our investment in GM within the next
12 to 15 months is consistent with our dual goals of winding
down TARP as soon as practicable and protecting taxpayer
GM Chief Financial Officer said the move and resulting
Treasury plans will remove an "overhang" on the stock that has
hurt sales and bring an "element of closure" to the bailout.
GM shares rose about 7 percent in premarket dealings.
(Reporting By Ben Klayman; Editing by Gerald E. McCormick)