General Motors Co. will spend $5.5 billion to buy back 200 million shares of its stock from the U.S. government, the Associated Press reported.
GM will pay $27.50 per share for the stock.
The government also plans to sell its remaining stake in the automaker within the next 12 to 15 months, AP reported.
The government acquired its stake in GM as part of a $49.5 billion rescue of the company that began nearly four years ago. As part of the bailout, GM entered and quickly exited bankruptcy, and renegotiated its agreements with labor unions in the United States and Canada.
After this sale, the government will still hold 300 million GM shares, AP said. GM said the government plans begins selling those shares on the open market starting in January.
GM's purchase of the 200 million shares still leaves the government about $21 billion short of breaking even on its investment. To break even, the government would have to get nearly $70 per-share for its GM stock, AP said.
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