Ontario Minister: Canada Should Sell GM Stake

The Canadian and Ontario governments should sell their combined 9% stake in General Motors Co. as soon as possible, Ontario Finance Minister Dwight Duncan tells the Globe and Mail.

The governments obtained the stock in exchanged for their US$9.5 billion contribution to the GM bailout in 2009.

Duncan says the government should end its involvement in the private sector. He adds that selling Canada's remaining 140 million common and 16 million preferred shares would put much-needed cash into the coffers of both governments.

Canadian Finance Minister Jim Flaherty has said Ottawa intends to sell its stake over time and aims to obtain the best price possible for shareholders. GM shares would need to reach $55 for Canada and Ontario to break even. The stock closed just above $26 on Friday.

The Canadian Auto Workers union has urged the federal and provincial governments to retain their GM holdings as leverage to prevent the company from shrinking its manufacturing presence in the country.