General Motors is reportedly pressing the United States Treasury Department to sell its remaining 27 percent stake in the company. The U.S. Treasury acquired 500 million shares of GM stock following its $49.5 billion bailout of the Detroit automaker.
According to The Wall Street Journal, GM is growing tired of its government ownership and is pressuring the Treasury to sell its remaining stake in the company. GM says the government's pay restrictions are preventing the company from landing top talent and that the general stigma of the lingering tax payer-funded bailout is hurting the company's public perception.
GM has reportedly presented the Treasury with a plan to sell back 200 million of its 500 million shares with the remainder to be sold via a public offering. However, the government has rejected GM's proposal, citing multi-billion dollar losses.
In order to break even on its $49.5 billion bailout of GM, the Detroit automaker's stock would need to hit $53 per share. Although GM's credit rating is inching toward investment grade, stock prices remain well off that mark, with shares trading below $24.
The Treasury Department has no plans in place to divest itself of GM ownership, but will eventually have to sell its remaining stake in the company. Given current stock prices, the Treasury estimates that it would lose about $25 billion on its Detroit bailout.