U.S. receives $2.1 billion from GM preferred share buyback
General Motors Co (GM.N) has bought back the government's holdings of GM preferred stock issued in the automaker's bailout for $2.1 billion, the U.S. Treasury Department said on Wednesday.
Completion of the repurchase brings GM's total repayments to U.S. taxpayers to $23.1 billion, including $13.5 billion received from the automaker's initial public offering last month, the Treasury said. It also counts $6.7 billion in GM debt repayments and $800 million from interest and dividends.
The government has invested about $49.5 billion in GM, which was steered through a government-sponsored bankruptcy in 2009.
The GM Series A preferred stock buyback was agreed in October at a price of $25.50 a share. GM has said it expects to record a $700 million charge against fourth-quarter net income for the difference between the purchase price and the recorded value of the preferred shares.
The transaction reduces the Treasury's holdings in GM to about 500 million shares of common stock, or around a 33 percent stake following the IPO.
[Source: Reuters, Washington, 15Dec10].
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