Skip to content
Catholic Online Logo

By Catholic Online (NEWS CONSORTIUM)

6/5/2013 (1 year ago)

Catholic Online (www.catholic.org)

Move may mean Treasury completely exits in 2013, rather than March 2014

The Treasury sold nearly 20 percent of its remaining shares in General Motors in the first three months of the year, the Detroit automaker disclosed.

The Treasury sold nearly 20 percent of its remaining shares in General Motors Co. in the first three months of the year.

The Treasury sold nearly 20 percent of its remaining shares in General Motors Co. in the first three months of the year.

Highlights

By Catholic Online (NEWS CONSORTIUM)

Catholic Online (www.catholic.org)

6/5/2013 (1 year ago)

Published in Business & Economics

Keywords: General Motors, S&P 500, shares, stock market, bailout


LOS ANGELES, CA (Catholic Online) - The U.S. Treasury says that it plans to sell 30 million additional shares of General Motors stock in a new public offering in conjunction with GM's return to the S&P 500 index.

Holding about 14 percent of GM, the United Auto Workers Retiree Medical Benefits Trust plans to participate by selling 20 million shares. This will make the total offering size 50 million shares, representing about 12 percent of Treasury's outstanding GM stock.

This may mean that Treasury completely exits in 2013, rather than by the end of March 2014. The return to the S&P will prompt significant demand for GM shares. Stocks have recently traded near its highest level since February of 2011. GM is filing a new prospectus ahead of the sale.

The Treasury sold nearly 20 percent of its remaining shares in General Motors Co. in the first three months of the year.

The Treasury, which initially held 60.8 percent of GM as part of the U.S. $49.5 billion bailout, now owns just 16.4 percent, or 241.7 million shares. The Treasury sold GM 200 million shares of its stake for $5.5 billion last December to reduce its stake to 300 million shares.

The Treasury has recouped $30.6 billion in total. At current trading prices, Treasury would lose around $10 billion on its GM bailout.

GM's return will mark the purchase of GM shares by many stock index funds. GM said it was happy to assist.

"We appreciate the opportunity to assist in this offering made possible by our rejoining the S&P 500," Dan Ammann, GM senior vice president and chief financial officer says. "Our focus remains on continuing the progress we are making in the marketplace with world-class cars, trucks and crossovers."

The move means that the UAW trust will hold about 140 million shares after the sale, or a nine percent stake, about the same size as the Canadian government's 140 million shares it still holds as part the Ontario and Canadian federal government's $10 billion GM bailout in 2008 and 2009.

"The sale is opportunistic given the recent S&P500 inclusion announcement, which we estimate requires an 85.4mm share buy. The accelerated sell-down by the government should be viewed positively," Capital analyst Joseph Spak says. "We believe (the Treasury exit) could be quicker - perhaps by the end of the year. This could open the door for additional capital actions including a potential dividend."

---


Pope Francis: end world hunger through 'Prayer and Action'


Copywriter 2015 - Distributed by THE NEWS CONSORTIUM

Pope Francis Prayer Intentions for March 2015
Universal:
Scientists: That those involved in scientific research may serve the well-being of the whole human person.
Evangelization: Contribution of women: That the unique contribution of women to the life of the Church may be recognized always.


Rosaries, Crosses, Prayer Cards and more... by Catholic Shopping .com


Comments


More Business & Economics

Australian father-and-son team raises $10 MILLION for beehive project Watch

Image of The beehive symbolizes productive activity, and for father and son Cedar and Stuart Anderson of Australia, their project was literally that.

By Catholic Online (NEWS CONSORTIUM)

The beehive symbolizes productive activity, and for father and son Cedar and Stuart Anderson of Australia, their project was literally that. Nearly 30,000 people have funded their "Flow Hive" project on Indiegogo for $10 million dollars. Not bad at all for such ... continue reading


'Slow ya roll' Obama. You spoke too soon? Job growth suddenly slows down Watch

Image of

By Catholic Online (NEWS CONSORTIUM)

Intent on rallying the nation on its improved economy, U.S. President Barack Obama appears increasingly aware that threats are gaining speed that could derail job growth. LOS ANGELES, CA (Catholic Online) - "Our economy has been growing, we've got momentum," ... continue reading


Federal taxes unbelievably through the roof for February Watch

Image of Uncle Sam took in a lot of cabbage for the first few months of 2015. Why is the U.S. still trailing a momentous deficit, then?

By Catholic Online (NEWS CONSORTIUM)

Uncle Sam took in a lot of cabbage for the first few months of 2015. Inflation-adjusted federal tax revenues hit a record $1,185,613,000,000 in the first five months of fiscal 2015. Why is it that the U.S. federal government still ran a $386,537,000,000 deficit ... continue reading


Top 10 most financially important cities in the world Watch

Image of

By Hannah Raissa Marfil (NEWS CONSORTIUM)

New York City is still the most important center in the financial world, according to the latest ranking made by the Long Finance in The Global Financial Index 17. In the latest rankings, it was observed that more cities in Asia are becoming important within the world ... continue reading


Apple topples AT&T from Dow Jones in reflection of iPhone's dominant position Watch

Image of The move by S&P Dow Jones Indices had been widely anticipated since a seven-for-one stock split in June 2014.

By Catholic Online (NEWS CONSORTIUM)

Largest company in the world, Apple will join the Dow Jones Industrial Average to replace AT&T. The change reflects the dominant position of the iPhone maker in the U.S. consumer economy today. The figures tell the tale: Apple has a market capitalization of ... continue reading


'Underage Red': Sephora shocks consumers with inappropriately named lipstick shades Watch

Image of

By Hannah Raissa Marfil (NEWS CONSORTIUM)

With lipstick shades called "Underage Red" and "Lolita," the cosmetic retailer brand Sephora is under fire once again. Using names that refer to young girls being described in a sexualized manner, the lipstick shades grabbed the attention of shoppers, eventually ... continue reading


Oprah Winfrey sadly shuts down Harpo Studios forever Watch

Image of 61-year-old, Oprah Winfrey continues to play an active role in Hollywood, despite the ending of her talk show and now Harpo Studios.

By Abigail James (NEWS CONSORTIUM)

Oprah Winfrey is set to shut down production at her Chicago-based Harpo Studios by the end of 2015. After much thought, the billionaire mogul has decided production for her personal network OWN will be better done in Hollywood. LOS ANGELES, CA (Catholic Online) - The ... continue reading


SHINY, RED APPLE: Computer giant is now twice as big as world's second largest firm, ExxonMobil Watch

Image of Strong sales of the larger-screened iPhones resulted in the largest quarterly profit reported by a company, with device sales rising 29.5 percent in the final three months of 2014 to $74.6 billion,

By Catholic Online (NEWS CONSORTIUM)

How big is Apple? The creator of the iPhone and tablets is SO BIG that it is now currently twice as big as its second-closest rival, ExxonMobil. This is being reflected in the stock market, where shares in Apple jumped 2.7 percent at the start of the week to ... continue reading


WHERE IS YOUR MONEY GOING? Government collects $1 trillion from taxpayers - and there's still a deficit! Watch

Image of Where is all of our hard-earned money going?

By Catholic Online (NEWS CONSORTIUM)

Where is all of our hard-earned money going? Real federal tax revenues for the first time ever topped $1 trillion in the first four months of the fiscal year, October through January, according to data released Wednesday by the U.S. Treasury. LOS ANGELES, CA ... continue reading


80 MILLION Americans have their privacy invaded in Anthem data breach Watch

Image of An internal investigation, days later verified that the company was a victim of a cyber-attack, the company said, and federal authorities were alerted.

By Catholic Online (NEWS CONSORTIUM)

Insurance giant Anthem suffered a massive security breach when hackers broached computer safeguards and mad a wild data grab. Up to 80 million Americans have had their privacy effectively invaded, although authorities say more sensitive information was not ... continue reading


All Business & Economics News

Newsletters

Newsletter Sign Up icon

Stay up to date with the latest news, information, and special offers

Daily Readings

Reading 1, Acts 6:1-7
1 About this time, when the number of disciples was ... Read More

Psalm, Psalms 33:1-2, 4-5, 18-19
4 The word of Yahweh is straightforward, all he does ... Read More

Gospel, Luke 24:35-48
16 That evening the disciples went down to the shore ... Read More

Saint of the Day

Saint of the Day for April 18th, 2015 Image

St. Apollonius the Apologist
April 18: Martyr whose Apologia, or defense of the faith, is considered ... Read More

Inform, Inspire & Ignite Logo

Find Catholic Online on Facebook and get updates right in your live feed.

Become a fan of Catholic Online on Facebook


Follow Catholic Online on Twitter and get News and Product updates.

Follow us on Twitter