Ontario Pushing To Dump GM Stock At A Significant Loss

ontario pushing to dump gm stock at a significant loss

The government of Ontario is calling on the Canadian government to sell off its shares in GM, obtained as part of a bailout package for the automaker in 2009.

Canada’s $13.7 billion bailout package resulted in the government of Ontario and the Canadian federal government holding roughly 9 percent of GM’s common stock. But Dwight Duncan, Ontario’s finance minister, wants to see those shares sold. Duncan told The Globe and Mail

“There are certain restrictions on how many we can move at once and so on, but the sooner we’re out of the stock the better…I just don’t think governments should be buying and holding stocks in private-sector companies.”

The shares are worth an estimated $3.5 billion, money that is sorely needed by both governments to pay down their deficits. But selling the shares at their current price would mean a significant loss for taxpayers. GM’s shares currently list for around $26 a share, but that would have to rise to more than double for taxpayers to break even on the bailout.

Canada last sold shares during the November, 2010 IPO, when it pocketed $424 million. The $3.5 billion made this time around would help the federal government balance its books prior to an upcoming election rumored for 2015, but would mean a multi-billion dollar loss with respect to the bailout funds and GM’s shares.

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  • 86er 86er on Nov 30, 2012

    Does Ontario still *have* a government?

    • Jjster6 Jjster6 on Nov 30, 2012

      Yes it does. A lousy one run by a clown that just quit.

  • Mikey Mikey on Nov 30, 2012

    @ 86er...To answer your question, no, we do not "have" a government. The Premier quit, a judge just fired the Toronto mayor. The feds say "no" we are not selling our shares. The Americans are not selling thier shares. So no government.nowhere, is selling thier shares. Nothing to see here folks.

    • Danio3834 Danio3834 on Nov 30, 2012

      And amazingly, our world didn't come to an end. Makes me wonder why we keep those clowns on the payroll.

  • Kps Kps on Nov 30, 2012

    I'm shocked — shocked! — to find the Ontario Liberals proposing something yielding “a significant loss for taxpayers”.

    • Nrcote Nrcote on Nov 30, 2012

      Because Tim would be so much better, right?

  • Gentle Ted Gentle Ted on Nov 30, 2012

    Mikey is partial correct about Ontario not having a Government, what the Premier did was prorouge Parliament as he was in deep sh! So many problems from Wind Mills to Orange Ambulance Service to many others, this system was practised by the current Tory Government a couple years back to get him(Mr. Harper)out of sh! too, its a component of the Parliament system we got from the United Kingdom, Its all legal and Ontario is being run by the Lt.Governor,and Council the Hon David Onley, who uses a Scooter to move about due to him being crippled from World War two injuries, there will be a new Premier some time in January 2013!

    • See 1 previous
    • Ranwhenparked Ranwhenparked on Nov 30, 2012

      Would you prefer the system we have in the states? Seriously, be thankful for what you have - it works, and it's comparatively civil. The Lieutenant Governor has a truly thankless job, and Ontario is lucky to have a man the caliber of David Onley.

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