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Post-IPO sag likely means taxpayers will take a loss on automaker's bailout.

The U.S. Treasury is reportedly readying a sale of its stake in General Motors.

The Wall Street Journal reports that despite the disappointing performance of the company's stock since its November IPO, Uncle Sam plans to sell the stake this summer. A sale over the next several months anywhere near current levels would mean U.S. taxpayers would take a loss on the $50 billion bailout of the automaker.

According to the Journal's math, the government would have to sell its remaining 500 million shares at $53 million per share, but General Motors ( GM - news - people ) shares closed below $30 yesterday, a fresh low since its November offering priced the stock at $33.

The Treasury can't sell its stake until May 22, the Journal noted, and the department appears to be targeting June, August and September for an offering, the newspaper said.

Both GM and rival Ford Motor ( F - news - people ) discussed their plans to increase auto sales in China Tuesday.

http://www.forbes.com/2011/04/19/us-government-readies-gm-stake-sale-marketnewsvideo.html
 

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I thought someone here said that the govt ain't going to loose money from all this bailout stuff :huh:


ok, ok, 53 billion is small change compared to current debt levels :laughing:
 
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