Canada sells GM stake

November 19, 2010 | 09:32

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Canada said Thursday it was selling nearly 20 per cent of its stake in General Motors, 30.5 million shares, as GM returned to the market with what could become the largest public share offering in history.

As part of GM's restructuring in 2009, the Canadian and Ontario governments were issued common equity in the new company as well as preferred shares in exchange for financial assistance.

"Now that General Motors is again becoming a publicly-traded company, the government has begun to reduce its ownership in the company," a statement said.

The US government had contributed $50 billion in emergency funds to GM while Ottawa and the province of Ontario provided $9.5 billion to help the company stay afloat.

Canada and Ontario are set to raise about one billion dollars in the stock sale, drawing down their combined stake in the company from 11.7 per cent to 9.7 per cent.

AFP

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