The sad saga of General Motor's bankruptcy is coming to a close as the company has announced plans to buy 200 million shares of stock from the U.S. Department of the Treasury.
The company will pay $27.50 per share which makes the deal worth $5.5 (€4.1 / £3.4) billion. This will reduce the Treasury's ownership to approximately 300 million shares which is roughly 19 percent of the company. The government plans to fully divest their remaining shares within 12 to 15 months, depending on market conditions.
In a statement, GM CEO Dan Akerson said "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.” He added, “We come to work every day grateful that taxpayers from the US and Canada stepped forward to rescue our industry, and determined to show this extraordinary help was worth it."