Canada's federal government and the government of the province of Ontario have started searching for an investment bank to sell the rest of their combined 140 million shares in General Motors, according to an unidentified source, Bloomberg reports. That represents a 10-percent stake up for sale. The news doesn't come as a surprise because Finance Minister Jim Flaherty said in December that Canada wanted to sell its shares of GM stock, a point that was reiterated yesterday by one of his spokespeople.

Canada invested $9.5 million for 175 million shares of GM's stock in 2009 as part of the company's government bailout. The automaker made an Initial Public Offering in November 2010, at which point Canada sold 35 million shares. The country currently is the third-largest GM shareholder, behind the US Treasury and GM-United Automobile Workers Voluntary Employee Beneficiary Association. Two-thirds of Canada's stake are held by the federal government and one-third by the Ontario government.

In addition to Canada's move to sell its GM stock, the US Treasury also said in December that it planned to sell all of its stock in the next 15 months, reports Bloomberg. It seems to be a good time to sell, as the stock has gained 11 percent since the IPO and 27 percent so far this year.

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    • 1 Second Ago
      • 2 Years Ago
      That's $9.5 billion with a B. If Canada had picked up GM shares for a nickel apiece, that would be a heck of a return.
      • 2 Years Ago
      GM needs to find a way to reimburse the US taxpayer.Clearly selling off GM stock will not be enough to cover the bailout. As a US taxpayer I find GM's lack of interest in the subject very upsetting as this was not an investment but a bailout due to failed corperate/union management.
        • 2 Years Ago
        I think I'm owed far more money for the unnecessary Iraq war and the trillion dollar paper weights called F-35's.
      Justin Shaw
      • 2 Years Ago
      Maybe it's just me but it kind of sounds like Canada doesn't trust GM to stay competitive in the market. Who knows, maybe we'll see Canadian cars ehh
      • 2 Years Ago
      Aboot time, eh?
        • 2 Years Ago
        I wonder how many beaver pelts and moose antlers (subtract the igloo tax) that is.
      • 2 Years Ago
      First of all, Autobiog is wrong, the Canadian and Ontario invested 9.5 Billion, with a "B". The travesty here is that these Governments only cleared $1.15 billion at the IPO, and $5.1billion from this latest sale. That's a loss of almost THREE BILLION DOLLARS! Are Canadians aware of this? Are they outraged? Alas, no. This story broke after noon on the Friday before a sunny long weekend. In case you're wondering why these Governments would make such a stunningly bad deal, you should know that the largest employer and corporate head office of GM Canada are located in the Finance minister's district.
      Avinash Machado
      • 2 Years Ago
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