GM to Buy Back Stock From Treasury |
| Wall Street Journal - Dec 19, 2012 |
General Motors Co. GM +6.53%took another step to escape the shadow of its bankruptcy and government bailout following the financial meltdown, announcing Wednesday that it would spend $5.5 billion to buy a big chunk of its stock held by the U.S. Treasury.
The auto maker will buy 200 million shares, or about 40% of the government's GM stake, in a deal that is expected to close by the end of this year. The repurchase price of $27.50 a share represents a 7.9% premium over the closing price on Tuesday. The purchase would reduce the Treasury's stake in GM to 19% from 26.5%.
"We felt this transaction is attractive to the company, good for business and good for selling more cars," GM finance chief Dan Ammann said Wednesday. "It moves us forward and eliminates a significant overhang on the stock that has weighed down the shares."
News of the purchase pushed GM shares up in early trading.
Read Full Article from Wall Street Journal
- Posted: 2012-12-19 14:47:15
| More Stock Investor Place Company News |
 |
|
|
|
| Stock Investor Place Company News Archive |
|
|
|
