Monday, July 6th16.3°C
26667
22748

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.

The Canadian Press
How does this story make you feel? (127 total votes)
Castanet MoodMeter
Frustrated
3.9%
Amused
4.7%
Annoyed
12.6%
Happy
42.5%
Sad
3.1%
Skeptical
33.1%


Read more Business News




Recent Trending




Today's Market
S&P TSX14682.39+44.40
S&P CDNX670.58-1.00
DJIA17730.11-27.80
Nasdaq5009.21-3.91
S&P 5002076.78-0.64
CDN Dollar0.7943+0.0009
Gold1167.80+4.80
Oil55.60-2.01
Lumber288.50+0.40
Natural Gas2.748-0.074

 
Okanagan Companies
Pacific Safety0.17+0.00
Knighthawk0.010.00
QHR Technologies Inc1.52-0.03
Cantex0.035-0.015
Anavex Life Sciences0.455+0.004
Metalex Ventures0.075+0.010
Russel Metals22.78-0.09
Copper Mountain Mining1.17+0.03
Colorado Resources0.09+0.03
ReliaBrand Inc0.006+0.000
Sunrise Resources Ltd0.04+0.01
Mission Ready Services0.165+0.005
Decisive Dividend Corporation3.00+0.50

 





FEATURED Property
22073284771 Rittich Road
5 bedrooms 3 baths
$879,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Active listening

Has this ever happened to you? You had an initial meeting with a prospect. You asked that prospect what seemed to be all the right questions. You had what felt to you like a good conversation, and bas...


The price of money

Money is not a commodity. By definition, a commodity is a generic product that is bought and sold on price alone. Money, Canadian bills for example, look the same, smell somewhat the same, and are ava...


TFSA strategies

Photo: Thinkstock.comThe federal government has increased the annual contribution limit of Tax-Free Savings Accounts (TFSA) to $10,000. Going forward, the annual limit will no longer be indexed to inf...

_



26376




Member of BC Press Council


26432