news

General Motors plans to buy $2.1 billion GM shares

In an effort to repay the US Treasury, General Motors has announced it is prepared to buy US$2.1 billion shares, after the company's initial public offering (IPO), to contribute paying off government debt.


General Motors owed the US federal government $49.5 billion after it was bailed out of bankruptcy on June 1, 2009. GM has so far repaid $6.7 billion, this last repayment, plus $700 million in dividends and interest, would bring the total to $9.5 billion.

The car maker also plans to contribute $6 billion to its US hourly and salaried pension plans. GM has said it will take place after the initial public offering some time next month.

Chat with us!







Chat with Agent