General Motors in a buying mood
General Motors, trying to clear the stigma of being partly owned by the U.S. government, said Wednesday will spend $5.5 billion to buy back 200 million shares of its stock.
The government, in turn, promised to sell its remaining 300 million shares on the open market starting in January and get out of the company's business within the next 12 to 15 months.
The government got its shares as part of a $49.5 billion bailout of GM that began nearly four years ago. It saved GM from collapsing into financial ruin.
GM said it will pay $27.50 each for the 200 million shares, and it expects to close the deal by the end of the year. GM stock closed Tuesday at $25.49, and it shot up 7.1 per cent in premarket trading Wednesday to $27.30.
"This is fundamentally good for the business," GM Chief Financial Officer Dan Ammann told reporters. He added that GM has market research showing that the government ownership has held down sales of the company's cars and trucks.
GM's purchase of the 200 million shares still leaves the government about $21 billion short of breaking even on its investment. To break even, the government would have to get nearly $70 each for its shares.
Read more Business News
- Borba trial to resume next monthPenticton / S. Okanagan - 5:00 am
- Council grabs attentionWest Kelowna - 5:00 am
- Horning making a comeback?Kelowna - 6:27 am
- Sex offender arrested for murderBC
|QHR Technologies Inc||1.24||-0.03|
|Anavex Life Sciences||0.205||-0.0145|
|Copper Mountain Mining||2.40||0.00|
|Sunrise Resources Ltd||0.02||-0.005|
|Mission Ready Services||0.27||-0.02|
“Is this a fair offer from ICBC?”…. “How much should I settle for?”… “What is my claim worth?” These are just some of the questions I regularly get as...
Last night I was privileged to be able to speak at the Greater Westside Board of Trade business awards dinner. Photo: ContributedI talked about Innovation and Collaboration which are two very interes...
There will be a time when you will need to decide who you should appoint as executor of your Will. As well, there may be a time when you will be asked by someone to act as the executor of his or her W...