(MENAFN) US No.1 automaker General Motors Co (GM) is set to buyback its stake from the US Treasury over the coming year, Reuters reported.
The two-step Treasury's plan, which includes a USD5.5 billion stock sale to GM, is part of a broader push to wind down the controversial financial bailout under the Troubled Asset Relief (TARP) program.
TARP was created by former president George W. Bush to prevent the collapse of the US banking industry during the 2007-2009 financial crisis.
The Treasury will reduce its stake to about 19 percent when the buyback closes this month from about 26 percent currently.
The planned GM sale will raise the proceeds the Treasury has recovered to USD28.6 billion of the USD50 billion bailout GM received.
With USD20.9 billion left from the original bailout, the government would have to sell its remaining shares at an average price of USD69.72 to break even.
The US Treasury rejected GM's approach after the US presidential election in November, as it offered only to pay market value for the government's stock, according to a senior Treasury official.
Treasury rejected a second offer of a small premium before the sides finalized the deal, said the Treasury official.