Canada, Ontario Sell Off $1.1 Billion in GM Shares, Reduce Stake By 20%
The national Canadian and provincial Ontario governments have agreed to sell 30 million shares in General Motors that they received in exchange for their contributions to the 2009 bailout of the automaker. According to Bloomberg, the shares are worth about $1.1 US billion, and were purchased by the Bank of America and the Royal Bank of Canada as a block.
The transaction will be completed early next week. The sale reduces the Canadian governments’ stake in GM by 21%, down to 110 million shares. Canada and Ontario had been, since the bailout, the third largest stockholder in General Motors, behind the UAW and the U.S. Treasury, and after the sale will own about 8% of the company’s shares.
“As we said from the start, our investment in GM was always meant to be temporary as we worked to maximize the return to Canadian taxpayers,” Finance Minister Jim Flaherty said in a statement. “The government of Canada is committed to exiting from ownership of GM as quickly as feasible, while maximizing the return for Canadian taxpayers, as we demonstrated today.”
The banks purchased the shares at a discount from Tuesday’s closing price, $37 a share, up 28% from the start of 2013.
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@Mikey - you have gone on record as being a supporter of trade unions. That group tends to deny the effects of trade barriers. Loony left??? - that is also a domain staked out by the socialists and unionists. Those very groups support the NDP. I'm centre right. I was explaining the psychological and sociological rationale for DenverMike's dislike of "non-Americans" pointing out how things are in the USA. Denver and I have been engaged in a very long debate on another site over tariffs. He just dances and prances and uses obfuscation to conceal the fact that he actually has no ground to stand upon. Since you talk about the Canadian auto industry, why don't you research protectionism in Canada and how it benefits USA companies to the detriment of the Canadian populace? You obviously have no idea as to what defines culture if you think that Canada is just the 51st state. The only part that I agree with you on is your last line "Lou does not speak for this Canadian.". I would hope not, only a brain injury would cause me to become that illogical and unpatriotic towards my own country.
@Pch101 You can try and gloss over the truth. You seem quite intelligent at times, that's why it is sometimes hard to comprehend the ridiculous comments you drop every now and then. The US has one of the most protected vehicle market in the free world. Those figures you gave seems to miss out on some significant barriers the US uses regarding global trade. Oh, and you missed a significant 25% tax, you guessed it, it's called the chicken tax. Linden Johnson brought this into effect when the chicken tax bill was put through congress at the behest of the then UAW boss. What about a thing called technical barriers? They are equivalent to a 26% import tax. Hey Pch101, what are they? Why doesn't the rest of the world do as we do. They use to sunshine, but now the US represents less than 20% of global vehicle trade. Everyone else is inferior and using inferior systems and regualtions, isn't that right? You seems to speak about the superior US design regs that has the US with one of the highest fatality rates in the OECD. Who is causing these accidents? Not us, we have the best. Maybe the US should adopt what everyone else is doing, instead of becoming insular and isolated. Yup, you guessed it, UNECE regs. The most common system for vehicle regulations in the world. It actually supports and facilitates global trade. Great instrument, if you want to export that is. Hey Pch101, don't let fact get in the way of your paradigms. Your problem is you have what is termed an Americian Exceptionalism issue. But I can live with that. I'll have to continually correct you with the many errors you make:) The US is the greatest country, maybe not the best at everything. I'm from there and so is my family. But to some of the brainwashed guys, leave the US and look around the world, it's an amazing place.
@PCH101- Great summary!..................except...... The data you presented is not incorrect, just incomplete. Pch101. it appears you do this often to support your arguments. This isn't lying is it? What would you call it? Being a giver of untruths? You seem to do this to support your paradigms, sort of like a religious zealot or an blinded car fan. Lets start from the top. You have failed to give an accurate depiction of how the US uses a system of technical barrier and tariffs to protect it's auto industry. Actually one of the harshest amongst it's OECD peers. You forgot to mention the Chicken Tax, if you are not aware it's a 25% tax levied primarily to protect the Big 3 pickup manufacturers. Lynden Johnson (Dem) was approached by the then UAW boss to implement the tax (the truth). To illustrate how effective this tax is, explain to me why pickups are the most profitable part of the Big 3 operations. Would that indicate to you that maybe the consumer is being ripped off. And somehow this will create inefficiencies. Hey Pch101, what about a thing called technical barriers? You say what are those. Just google it. Techical trade barriers on vehicles to be imported into the US amount to an equivalent tax of 26%. Not chicken feed is it :-) Pch101, for the US manufacturers to gain they must export. I think it's about time for the US vehicle manufacturers to restructure and become part of the world,ie, the US adopt UNECE regs. The US is losing it's influence to dictate and it will lose considerable income by adopting an isolationist stance. UNECE regs actually are designed to facilitate trade, yes, contrary to your theory that something or someone is out to get the US. Before you again denounce these regs and state how superior your US regs are, why is it the US has one of the highest fatality rates amongst advanced economies, nearly double most others? You drive more miles? What about the Canadians who have a much lower fatality rate, or even in Australia, they do drive as much as your average US person. I do understand you have an issue regarding your American Exceptionalism attitude. I do think the US is the greatest nation historically, but it might not be the best at everything. Remember, I'm an American too. So you can target with a tit for tat comment on Australia, I will probably support your view. Open your mind and remember there are 6.7 billion people outside of the US. That's alot of great people and ideas all vying to have what the US/Canada/Australia has.
@BAFO- I write the truth because I love the business. I am loyal to GM, as you point out the obvious. They gave me a very good life and a great retirement. If you would get you head out of la la land, you might learn something from these posts. Your notions about people on some payroll and multiple screen names are nonsensical, paranoid. Your comments are becoming a laughingstock. Just ridiculous.