General Motors to spend $5.5B to buy back 200M of its shares from US government - InfoNews

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General Motors to spend $5.5B to buy back 200M of its shares from US government

FILE - In this Friday, Oct. 14, 2011, file photo, President Barack Obama speaks at the General Motors Orion assembly plant in Orion Township, Mich. The U.S. government said Wednesday, Dec. 19, 2012, that it will sell its remaining stake in General Motors in the next year or so, winding down a $50 billion bailout that saved the iconic American car giant but also set off a heated debate about government intervention in private business that influenced this year’s presidential election. (AP Photo/Carlos Osorio, File)
December 19, 2012 - 5:17 AM

DETROIT - General Motors will spend $5.5 billion to buy back 200 million shares of its stock from the federal government.

The government also plans to sell its remaining stake in the automaker within the next 12 to 15 months.

GM will pay $27.50 per share, about $2 more than Tuesday's closing stock price.

The government got its shares of the company as part of a $49.5 billion bailout of GM that began nearly four years ago.

The bailout saved GM from collapsing into financial ruin.

The move leaves the government with 300 million shares. GM says the government plans to sell them on the open market starting in January.

The deal still leaves the government $21.5 billion short of breaking even on its investment.

News from © The Associated Press, 2012
The Associated Press

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