UAW VEBA Fund Sells GM Stock, Adds $171 Million To Trust
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The UAW Retiree Medical Benefits Trust (a.k.a. VEBA), which was established in 2009, will sell 45.4 million warrants to buy General Motors stock. These warrants also allow the UAW the right to buy GM stock at as much as $42.31 per share (well above its current price of $35.86 per share) at any point before the end of 2015. Additionally, the warrants themselves each were priced at $3.85 a piece.
We’re not quite sure how the UAW plans to profit from this move, but considering that GM’s stock is trending upward, the deal may be less of a risk than it initially seems.
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Will GM have to cover the cost if veba cant cover the cost because of this?