GM Says UAW Retiree Health Trust Commences Sale of WarrantsBill Koenig
General Motors Co. said the United Auto Workers Retiree Medical Benefits Trust is offering to sell as many as 45.5 million warrants to purchase GM common shares.
Each warrant represents the right to purchase one share of common stock at $42.31 a share, subject to some adjustments, the Detroit-based automaker said in a statement on its website. The warrants expire Dec. 31, 2015. GM won’t receive any proceeds from the offering. GM fell 0.5 percent to $36.75 at the close in New York.
An auction to price the offering is to start tomorrow at 8 a.m. New York time and close by at 6:30 p.m., according to the statement.
The UAW health care trust provides medical coverage for union retirees. The trust is selling the warrants after GM has surged 27 percent this year, exceeding the 20 percent gain for the Standard & Poor’s 500 Index. The trust is the second-largest GM shareholder with 140.2 million shares, according to data compiled by Bloomberg.
Canada’s government has begun a search for investment banks to sell its stake in GM, a person familiar with the matter said last week. The U.S. has said it will shed its stake by the end of 2014’s first quarter.