Shares of General Motors held by the Canadian federal government and the government of Ontario may have difficulty unloading their $9 billion stake in General Motors, according to a report by Bloomberg.
The chief concern is that a sudden sale of GM stock in mass quantities would be a tough sell; expectations of “flat performance” and the sudden liquidation of the shares have sparked fears that demand would be weak.
Canada GEN Investment Corp, the entity responsible for overseeing the government stake in GM, is apparently hoping to sell the shares directly to GM itself. Matthew Stover of Guggenheim Securities LLC told Bloomberg
“They’ve got a ton of cash on their balance sheet, so I would personally imagine the company to be a big buyer of the stock.”
Unfortunately, most of the documents pertaining to the stock sale were censored, which makes it difficult to glean any further information or context. But Canada GEN seems to be betting big on GM’s willingness to buy back their stock.