US yet to determine price, timing of GM share sale

WASHINGTON: The US Treasury has yet to determine a target price or timeframe for selling its remaining shares in General Motors Co, a White House official said on Wednesday.

Ron Bloom, the Obama administration's point man for auto restructuring, also told reporters the government would likely wind up selling its small stake in Chrysler to Italy's Fiat SpA, which already operates Chrysler.

"We are committed to exiting these stakes," Bloom said, adding that the government still expects to lose billions on the $80 billion auto industry rescue marked by the forced bankruptcies of GM and Chrysler in 2009.

Taxpayers own a third of GM and roughly 6 percent of Chrysler, stakes gained in return for bailout and bankruptcy financing.

Bloom's remarks followed the release of a White House report showing taxpayers would probably lose less money than first anticipated on the bailout, which also included money for suppliers and retail financing arms.

He said an estimate of a $14 billion shortfall was "a reasonable number" for now -- down from nearly $50 billion when the bailout and bankruptcies were executed.

"We'll get back what we get back. I don't have a best guess. It will be what it is," Bloom said.

Copyright Reuters, 2011