The US Treasury Department intends to sell its stake in General Motors (GM) completely and on market terms within the next 12-15 months. The shares held by the US Treasury in the automotive group were part of the auto sector rescue program, set in motion to revive the big names in the sector and better known as the Troubled Asset Relief Program (TARP). To achieve this goal, General Motors will purchase 200 million treasury shares held by the Treasury at a price of $27,50 per share.
The more than 300 thousand remaining shares will be sold by the Treasury, through various means in an orderly manner within the next 12-15 months, and at market conditions. The Treasury intends to start the sale of the remaining shares in the first few months of 2013, while it has not provided any explanations "on the manner, quantity and timing of the sales envisaged by the plan which depend on a series of factors", reads the US Treasury note.
"The auto industry bailout helped save more than a million jobs during a severe economic crisis, and the TARP program was intended to be a temporary emergency program," the Deputy Secretary of State Affairs noted. financial stability Timothy G. Massad. “The Government should not own shares in private companies for an indefinite period of time”, Massad declared again and therefore the exit path for our investment in GM within the next 12 15 months is in line with our objectives and satisfies a dual purpose: to cancel the TARP as soon as possible and to protect the interests of taxpayers,” concluded the Deputy Secretary for Financial Stability.
