US Treasury to exit GM investment within 12 to 15 months
WASHINGTON (AFP) - The United States (US) Treasury said on Wednesday it would sell its investment in US automaker General Motors (GM), a stake it bought as part of a government bailout of the auto industry, over the next 12 to 15 months.
The announcement came as GM said it would buy 200 million shares of GM common stock held by the Treasury for US$5.5 billion (S$6.7 billion), or US$27.50 per share.
The Treasury, which currently holds 500.1 million shares of GM common stock, said the move was part of its "continuing efforts to wind down its investments in the Troubled Asset Relief Program (Tarp)".
"The auto industry rescue helped save more than a million jobs during a severe economic crisis, but Tarp was always meant to be a temporary, emergency program," said Mr Timothy Massad, assistant secretary for financial stability.