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Treasury To Sell Off More GM Shares

The U.S. Treasury has formally announced that it would sell the shares in a public offering in conjunction with the company’s inclusion to the Standard & Poor’s 500 index on Thursday, June 6.

The offering will take place along with the sale of 20 million shares of GM stock held by the UAW Retiree Medical Benefits Trust, bringing the total size of tomorrow’s sale to 50 million shares.

In January, the Treasury announced it would divest its 300.1 million shares incrementally, with the target date to be completely divested by March 2014. Estimations before tomorrow’s sale are that Treasury still owns around 270 million GM shares.

Former staff.

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Comments

  1. in the short term, actually it’s the opposite of what you suggest. this is the first time that the VEBA has announced its plans to sell stock. this could reduce demand for the stock, as now the largest AND the second largest shareholders are selling. if Canada announces next, that would be a trifecta, and again reduce demand for the stock. it’s like one big neighborhood, where it turns out the homeowner with the most houses says he wants to sell, and then the homeowner with the second most houses says he wants to sell too, and the third, and so on. eventually all those houses will be moved, but until then, it’s not a great market.

    of course, none of this will matter after 3 years when it’s all over. can’t wait!

    Reply
    1. If these were normal sales of stock I would agree. However we are talking the government selling stock. There are lots of folks out there who will not touch GM until they are not owned by the government. Once the US is out of GM and the profits keep coming the stock price will continue to rise.

      Reply

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