GM Purchasing Back $3.2 Billion in Stock from VEBA

General MotorsGMUnited States of America, 1998 > present8 models
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will purchase 120 million shares of its own stock from VEBA, the United Auto Workers Retiree Medical Benefits Trust for $3.2 billion, $27 per share on September 30. To raise money to pay for the shares, GM will offer bonds in the company in five, 10 and 30 year durations.

VEBA will still hold 140 million shares of GM stock after the sale.

GM is actually a good deal for the shares, which opened on the US stock market at $37.15 per share and are trading for $37.11 per share as of this writing.

VEBA is preparing for an initial public offering from ChryslerChryslerUnited States of America, 1925 > present70 models
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that will put the company on the public market. FiatFiatItaly, 1899 > present159 models
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is hoping that the IPO will result in a price for Chrysler less than what VEBA wants to sell its roughly 45% share in Chrysler for. Then, Fiat could by VEBA's share for a cheaper price.