According to an August report by the Treasury Department, The US government sold part its stake in General Motors. A whopping USD811 million worth of General Motors common stock was sold. The Treasury has yet to reveal the price per share of GM stock sold in the months of July and August.
However, Associated Press estimated that at a midpoint price of USD35.34 in August, the government sold around 23 million shares. In July, the government sold around 25 million shares at a midpoint price of USD35.56. The news agency arrived at midpoint prices based on the price ranges of GM stock sold within the months of July and August.
Based on the math done by Associated Press, the US government has an estimated 186 million shares left that needs to be sold should it decide to exit GM. Interestingly, the government needs to sell shares at an almost 100% premium of GM's current market price in order to break even.
The report also showed that of the USD49.5 billion in state aid the government awarded to the Detroit automaker, about USD35.4 billion has been recovered.
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