U.S. Trims GM Stake to 7.3%

The U.S. Dept. of Treasury has sold more than 110 million shares in General Motors Co. since early May, raising $3.8 billion and reducing its remaining holding to 101 million shares.

The U.S., which owned 60.8% of GM in 2009, has reduced that stake to 7.3%. The Treasury Dept. expects to sell its remaining equity by early next year.

The government gained its stake four years ago as part of its $49.5 billion bailout of GM. After the current sale, it figures it will have recouped about $35.4 billion of its investment. The balance of its shares are worth about $3.8 billion at Wednesday's closing price of $37.58.

The Treasury Dept. has said the government expects to lose about $15 billion on its GM investment. But officials emphasize that the objective of the bailout was to avoid a collapse of the American auto industry and save an estimated one million jobs.