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Sale of GM Shares ‘Bad News,’ Says Union

Posted April 08, 2015

Under Economic Issues, International Trade Issues

(Dana Flavelle – Toronto Star)

Ottawa’s decision to unload its remaining multibillion-dollar stake in General Motors could come at the expense of auto industry jobs, the union representing Canadian auto workers warns.

The federal Finance Department disclosed in a statement late Monday that it had sold nearly 73.4 million shares in an unregistered block trade to Goldman, Sachs & Co.

Ottawa’s stake in the automaker was worth more than $3.3 billion, based on a $36.66 (U.S.) price at Monday’s close and a Canada-U.S. exchange rate of $1.2473.

The deal marks the end of “Government Motors – the nickname the company earned after governments on both sides of the border injected a total of $60 billion (U.S.) into the auto industry to save thousands of jobs and soften the economic blow from the U.S.-led financial crisis in 2009. Click here to read more.