GM has dropped 19 percent this year in New York trading and 9.3
percent from its initial public offering price. While the Treasury may
be willing to take a loss on the shares, which early last week were
trading at nearly $30, the Obama administration is looking for a price
that is at least in the range of the $33 IPO price, the person said.
The government would need to sell the shares at about $53 apiece to
break even on the investment.
The Treasury may file to sell shares with a traditional S-1 filing
after a lockup period expires May 22. The Securities and Exchange
Commission would then review the offering like an IPO, which would
delay the actual sale until June, the person said.
If the department waits until July 1, the government would be able to
sell the shares with a less-thorough review and could get the offering
started more quickly. In that case, the Treasury Department likely
would wait until GM reports second-quarter earnings before selling
more stock, delaying the sale until August, the person said.
The Treasury may make a third offering of shares in November or
December and doesn't need to sell all of the shares this year, the
The Treasury sold shares equal to a 28 percent stake during the IPO.