Very Very Huge News
General Motors has reached a deal with the federal government to buy back $5.5 billion dollars worth of shares of their stock.
GM will buy back 200 million shares of stock at $27.50 from the Treasury Department, a price eight times greater than the current stock price.
The Treasury Department also plans to sell its remaining 300 million shares in the next 12 to 15 months at a $12 billion loss.
"They're able to offer that money to buy those shares back," said UAW Local 1112 president Glenn Johnson. "As any shareholder, it's the government's choice whether they choose to sell at the offered price or whether they choose to hold out for more money, no different than you or I, if we were shareholders."
Interesting.
What arm of the Federal govt. are they borrowing that cash from to buy back the stock?