General Motors' Stock Falls After Canada Agrees To Sell Its Stake

MarketWatch Pulse

General Motors Co.'s stock dropped 1.9% in premarket trade Tuesday, after the Canadian government announced late Monday an agreement to sell its 73.4 million stake in the auto maker. The sale, which will be sold by Canada GEN Investment Corp., a subsidiary of Canada Development Investment Corp., to brokerage Goldman Sachs , will be completed April 10. The Government of Canada's 73.4 million share stake made it General Motors' third-largest shareholder, according to FactSet. Sterne Agee analyst Michael Ward indicated investors should fret too much about the large sale. "While we believe GM is restricted from participating in the block trade, we believe the company can remain active in the open market under the repurchase plan to take advantage of any price volatility," Ward wrote in a note to clients.

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