GM Buys Government Stake, Treasury To Lose Billions
Posted on December 19, 2012 at 12:28 PM EST
General Motors (GM) will buy 200 million of its shares from the Treasury for $5.5 billion, ending the government's ownership in the automaker. The Treasury stands to lose billions on the deal. On Wednesday, GM announced it would pay $27.50 per share to buy back its shares from the Treasury, which has owned part of the company since the bailout in 2009, prompting critics to give automaker the nickname "Government Motors." The deal is set to close