General Motors Announces Secondary Offering By VEBA Trust

(RTTNews) - General Motors Co. (GM) Tuesday said the UAW Retiree Medical Benefits Trust intends to offer for sale 40 million shares of GM common stock in a secondary offering.

The selling stockholder will receive all of the proceeds from this offering. No shares are being sold by GM.

In connection with the VEBA Trust's acquisition in 2009 of the shares of GM common stock subject to this offering, the U.S. Department of Labor required the VEBA Trust to appoint an independent fiduciary to make all decisions with respect to the disposition of such shares.

GM also announced that it intends to repurchase from the underwriters a portion of the 40 million shares of common stock being offered having a value of about $100 million at a price per share equal to the price per share that the underwriters pay to the VEBA Trust in the offering.

Citigroup and Barclays are acting as underwriters for the offering.