U.S. Treasury, UAW Selling 50 Million Shares of GM Stock
Fifty million shares of GM stock are being offered by the U.S. Treasury Department and the UAW Retiree Medical Benefits Trust. The 30 million shares from the Treasury and 20 million from the UAW come just as GM prepares to reenter the Standard & Poor’s 500 (S&P 500) Index this week. Currently, GM stock is trading at about $34 a share.
The Treasury expects to completely divest itself of GM stock by the end of the first quarter of the 2014 calendar year. Currently, the government owns about 18 percent of GM stock, down from 60.8 percent ownership. Shares will continue to be sold as part of pre-planned written trading plans until the Treasury has no stake in GM.
GM was previously part of the S&P 500 from 1957 until the automaker went bankrupt in 2009. Reentering the index could give a temporary boost to GM’s stock price. GM’s May sales in the U.S. were up 3.1 percent year-over-year, with year-to-date sales totaling 1,155,503 units.
Source: U.S. Treasury, The New York Times
By Zach Gale