DETROIT (WKZO) -- General Motors plans to purchase back 200-million shares of common stock held by the U.S. Department of Treasury within the next twelve to 15 months. The purchase, at $27.50 a share comes to a total of 5.5-billion dollars.
After the repurchase the government will still own approximately 300-million shares of GM common stock which is about 19-percent of the outstanding shares. The Treasury Department says these shares will be sold off, "through various means and in an orderly fashion."
General Motors chairman and CEO Dan Akerson says "This announcement is an important step in bringing closure to the successful auto industry rescue, it further removes the perception of government ownership of GM among customers, and it demonstrates confidence in GM's progress and our future."