GM stock lower amid report of quick govt sale
The government sale would “almost certainly” mean that US taxpayers would take a loss from a politically controversial $50 billion rescue of the auto giant in 2009, according to the paper.
The government would need to sell its roughly 500 million shares for $53 dollars each in order to break even, but GM’s stock is currently hovering at a price of just under $30 per share.
At the current price, the government would lose more than $11 billion, but the Obama administration is willing to accept the loss in order to cut its last ties to the auto manufacturer, the newspaper said, citing unnamed sources.
