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No more GM or Chrysler for me...
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Radiehl
Posted 11/8/2012 22:38 (#2686827 - in reply to #2686544)
Subject: RE: No more GM or Chrysler for me...



Colorado
With election over, administration does not have to worry about criticism for taxpayer losses when it sells the government's 32% stake in General Motors.


President Barack Obama's re-election opens a clearer path for the government to begin selling its 32% stake in General Motors, though the administration has given no indication of when such a sale will happen.
"The Obama administration could just go ahead and unload the stake quickly and probably not have to take too much fallout," Morningstar analyst David Whiston said in an interview. "They would still get some negative publicity, though."
On Monday, GM secured a new $11-billion credit facility, fueling speculation it would use some of it to buy back shares. But Whiston said the credit facility was "needed to give GM the proper liquidity to function for its size" because its previous $5-billion facility "was too low."
Whiston said he expects a federal sell-off to take six to 24 months.
The government's 500 million shares must sell at an average of $53 for taxpayers to break even. The stock closed Thursday at $24.72.
"We believe that the U.S. Treasury is likely to begin selling down its stake in GM shortly after the election," Barclays analyst Brian Johnson wrote in a note to investors this week. "We believe that the Treasury is likely to announce a gradual sell-down plan, similar to what it has done for its stake in AIG."

http://www.usatoday.com/story/money/cars/2012/11/08/obama-general-m...
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