Ontario and federal government to sell 20 per cent of GM shares in IPO


Federal and provincial finance ministers are telling the media it is too early to know how much the respective governments will make in selling shares in General Motors when the automaker has its initial public offering later this month.

Both governments have confirmed they will sell 20 per cent of their stake in the automaker and that shares are estimated to be worth between $26 and $29 each.

At that value, the two Canadian governments would earn between $791.7 million and $883.1 million. More than $9 billion (U.S.) of taxpayer money was spent by Ontario and the federal government last year propping up the failing automaker.
The Canadian Press reported that minister Dwight Duncan says even if Canadians don't recoup all the money they sunk into the company, it was still a “good investment” because it helped save the economy – a comment reiterated by federal Finance Minister Jim Flaherty.

GM is scheduled to set a final share price on Nov. 17 ahead of the Nov. 18 trading date. Shares are expected to trade on the Toronto and New York stock exchanges.

- with files from The Canadian Press