Canada: No Rush to Sell GM Stock

The U.S. Dept. of the Treasury is selling 200 million of its General Motors Co. shares to the company and aims to divest its remaining 19% stake over the next 15 months.

But that decision has no bearing on when Canada sells its roughly 9% GM stake, says Prime Minister Stephen Harper. He declares that the country aims to "maximize the value" for its taxpayers, implying that Canada prefers to wait for the company's stock price to rise.

The U.S. will receive $27.50 per share from GM for the stock it is currently selling short of the $33 price at the company's initial public offering in November 2011. GM shares closed at $29.86 on Friday.

Canada (including the province of Ontario) received a combined 11.7% of GM's equity in exchange for part of its US$9.5 billion contribution to the company's bailout in 2009. The country sold about 35 million shares for $1.2 billion in GM's IPO and still owns about 140 million shares.

Canada also recouped $1.3 billion loan when the company repaid its loan in 2010. Harper reiterates that the country doesn't intend to be a long-term shareholder.