U.S. Treasury plans to reduce GM stake to 37%

By Reuters
Posted Nov. 17, 2010 at 5:43 p.m.

The U.S. Treasury will raise gross proceeds of at least $11.8 billion in the General Motors Co. initial public offering, reducing its ownership stake in the bailed-out automaker to just under 37 percent.

Senior administration officals told reporters late on Wednesday that Treasury could unload up to 412 million shares if an overallotment option is exercised, increasing the government’s gain to $13.6 billion and reducing its stake to 33 percent.

The Treasury extended GM $50 billion in 2009 and took a 61 percent stake after the company emerged from a government-led bankruptcy.

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