US sells more GM shares, cuts stake to 7 pct.
NEW YORK (AP) — The U.S. government says it’s starting another phase of selling General Motors stock after cutting its stake to just over 7 percent.
The Treasury Department says it still owns 101.3 million GM shares. It got 912 million GM shares in exchange for a $49.5 billion bailout of GM in 2009. So far taxpayers have recovered about $35.4 billion. That means they’re still $14.1 billion in the hole on the bailout.
To break even, the remaining shares would have to sell for nearly $140 each. At the current price of $37.19, the government would get nearly $3.8 billion more. So taxpayers are likely to lose around $10 billion on the deal.
The Treasury plans to sell all of its shares by the first of April.