Wednesday, December 19, 2012
The U.S. Dept. of Treasury announced that, as part of its continuing efforts to wind down its investments in the Troubled Asset Relief Program (TARP), it intends to fully exit its investment in General Motors (GM) within the next 12-15 months, subject to market conditions.
Treasury currently holds 500.1 million shares of GM common stock. It intends to exit that investment through the following means:
•GM will purchase 200 million shares of GM common stock from Treasury at $27.50 per share. This transaction is expected to close by the end of the year. (GM also issued a press release to this effect.)
Treasury intends to sell its other remaining 300.1 million shares through various means in an orderly fashion within the next 12-15 months, subject to market conditions. Treasury intends to begin its disposition of those 300.1 million common shares as soon as January 2013 pursuant to a pre-arranged written trading plan.