According to three people familiar with the matter, General Motors executives have discussed buying shares from the U.S. Treasury Department to reduce the Obama administration’s 33 percent stake in the company.
While not decisions have been made on a purchase plan, GM is weighing options for its cash. The options include horing up its underfunded pension plan, paying off debt and funding new vehicle programs.
David Whiston, an analyst with Morningstar Inc. in Chicago, said that GM could use $30.6 billion in cash and marketable securities it had at the end of the first quarter to reduce the U.S. government’s stake.
– By: Omar Rana
Source: Automotive News