would gm try to buy back shares with cash hoard to pay off USA feds?
i think it was the a/p that mentioned this scenario in a recent article. i did the calculations and it's possible if they offer a buyback at $25.00.
if share price stayed the same, ie $25.00, and p/e remained at 9.48, they would have to buy back 829,433,962 shares to raise the stock to $53. supposedly the USA gov could sell shares and get bailout money back. that's almost a $21 billion stock by back. they have the cash to pull it off. after USA gov sells, they can reissue stock and get cash back.
kind of a weird scenario - spending all that cash to payoff bailout loan and make the company look good to consumers.
If I was GM I would announce a long term plan to buy back ALL of the shares from the government in a planned action. The price of the stock would skyrocket once the public was convinced that the government was getting out. GM has plenty of cash to start that process now.