U.S. government plans to sell another 30 million shares of General Motors Corporation's stock on Thursday IPO because it accelerate its efforts to divest itself of the shares from the automotive giant, which bailed out four years ago.
Treasury will share prices after the market closes on Thursday, and sales occur shortly thereafter. United Auto Workers union retiree health care trust fund will be added to the sales and sold 2,000,000,000 shares, 5,000,000,000 shares in issue size to push.
GM shares fell 76 cents, or 2.2 percent, to 34.2, in afternoon trading on Wednesday, but it has recently been achieved tremendous growth. On Tuesday, the stock hit $ 35.49 in December 2010 its highest point since, according to FactSet. Shares since the beginning of approximately 19%.
The public offering will help accelerate from owning GM stock, which in 2008 and 2009 was $ 4.95 billion U.S. dollars bailout plan in exchange for the government's export. Late last year, the government still owns 500 million cars, but in December, GM $ 550 million U.S. dollars for the purchase of 200 million shares and the Treasury Bureau promised early next year to gradually sell its remaining stake.
General Motors has been eager for the government's partial ownership of the company to exit, hoping to get rid of mocking nickname "government vehicles", as well as to attract customers shunned General Motors, because it puts the government's money. GM's cash at the end of 2008 almost ran out, the need for government cash to make it through bankruptcy protection. Although the government's ownership, the company also belongs to cap executive pay, it says hinder recruiting top talent.
Sold 5,000,000,000 shares, Citigroup Global Markets Limited, JP Morgan Securities LLC and Morgan Stanley & Co. LLC, for General Motors Corp. will re-enter the Standard & Poor's 500-stock index.
On Thursday, General Motors will replace Heinz in the S & P 100 and 500 indices. Then expected to be completed 3G investment and Warren Buffett's Berkshire Hathaway ketchup manufacturer's acquisitions.
Stocks tend to get at least temporarily boost after adding the S & P 500 index because index funds follow the additional shares of its portfolio.
GM Chief Financial Officer Dan Amman said the company in a statement appreciated the opportunity to help sales, which is likely to re-join S & P 500 index.
In the latest report by the end of April, the U.S. Treasury Department has recovered approximately $ 30.7 billion $ 4.95 billion bailout. This means that the taxpayer is still $ 18.8 billion in the hole. So far this year, the government has sold 5.84 billion shares of General Motors stock, and received 1.6 billion dollars net proceeds. This leaves 241,700,000 shares of General Motors stock is still in government hands. It had to sell the stock to around $ 78 per share, for the government to recover all of its bailout costs.
Thursday after the sale, the government will still have about 21.1 billion shares, although it may not open in May on the open market to sell additional shares. U.S. Treasury says it still plans early next year to sell its stake in General Motors.
Last month, GM shares hit a big milestone, when they received higher than November 2010 initial public offering price of $ 33 for the first time over two years.
Since early May, the company's stock has been gradually rising, when it's strong sales in North America recorded a solid first-quarter earnings. Help signs after the month in the European auto sales decline may have bottomed out. General Motors has lost money in Europe over a decade.
All car manufacturers in the U.S. listed shares are showing double-digit growth this year.
 
 



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