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Feds sold $489M in GM stock in February
Detroit News
March 11, 2013
by David Shepardson

Washington — The U.S. Treasury sold at least 17.2 million shares of stock in General Motors Co. in February as it vows to exit its stake in the Detroit automaker by March 2014.

In a report to Congress late Monday, Treasury said it had raised $489.9 million from the sale of shares in GM last month.

Treasury hasn't disclosed the precise number of shares it sold, but based on stock prices in February, the government sold between 17.2 million and 18.1 million. That means since January, Treasury has sold at least 22.6 million shares — or at least 7 percent of its 300 million shares it is selling off. Treasury said last month it had net proceeds of $156.4 million in January for the sale of GM stock during eight full trading days of the month.

GM stock closed Monday up $0.31 a share to $28.31, up 1.1 percent, in heavier than normal trading.

The Treasury has recouped $29.8 billion of its $49.5 billion bailout. It swapped most of its bailout to GM awarded in 2008 and 2009 for a 61 percent majority stake in 2009. The government shed about half its stake in GM's November 2010 initial public offering and after December's sale, shrunk its stake to 19 percent.

The Treasury plans to disclose on a quarterly basis how many shares of GM stock it has sold; it reports monthly its proceeds from the ongoing sales.

In January, the Treasury named Citigroup Inc. and JPMorgan Chase & Co. to manage the sale. The banks will get a 1 cent per share commission — or $3 million — for the sale of the entire stake.

Treasury also disclosed on Monday it has retained six smaller broker-dealers to assist with Treasury's sales of its GM common stock. The six smaller broker-dealers are: Academy Securities — owned by disabled Veterans — C.L .King & Associates, Lebenthal & Co LLC, Chicago-based Loop Capital Markets, Ramirez & Company and The Williams Capital Group LP.

Full article available at link.
 
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