GM stock buy-back will cost taxpayers about $15 billion
In order for them to recover their entire $30 billion still in the company, GM’s share price should be exactly double of what it is paying Treasury today. This means that if taxpayers sell the remaining 300 million (19 percent of the outstanding shares) at $27.50, they will be in the red by about $15 billion – give or take a few. And this of course does not count the $15 billion or so in illicit tax write offs that the administration handed GM during bankruptcy.
Also, although the $27.50 share price represents a nearly 8 percent markup over the closing price yesterday, it is $5.50 below GM’s IPO price – and at least $13 to $17.50 below what many analysts two years ago had hoped it would stabilize at.