FOR IMMEDIATE RELEASE
UAW fund portion of equity offering approx. $688 million, part of $1.7 billion shares sold
NEW YORK, June 7, 2013 – Milbank, Tweed, Hadley & McCloy represented the independent fiduciary and investment manager for the United Auto Workers Retiree Medical Benefits Trust in connection with the fund’s agreement to sell 20 million shares of General Motors common stock. The transaction was part of a combined offering that included the sale of 30 million GM shares by the US Treasury. Together, the total equity offering raised approximately $1.7 billion for the selling shareholders.
New York-based securities partner Arnold Peinado led the Milbank team advising Brock Fiduciary Services LLC in the transaction. The value of the UAW fund’s portion of the sale was around $688 million. The Treasury Dept. sold GM shares that the government purchased in 2009 as part of the Troubled Asset Relief Program’s bailout of the US auto sector. The June 6 offering coincided with GM’s return listing on the S&P 500, after leaving the index in 2009 when the company declared bankruptcy. Treasury, which still owns nearly 18% of GM’s common stock, has vowed to fully exit its holdings by early 2014.
“We are honored to have participated in this milestone offering, bringing a large pool of equity in one of America’s iconic corporations back into the market for public shareholders,” said Mr. Peinado. “It’s also gratifying to play a key role supporting UAW retirees who are selling such a sizeable portion of shares, in combination with the US Treasury. This transaction reflects the continued vitality and return to health of GM as one of the world’s leading automotive brands.”
In addition to Mr. Peinado, Milbank’s team on behalf of Brock Fiduciary Services included executive compensation and employee benefits partner Joel Krasnow, along with associates Brett Nadritch and Robin Heszkel, all of the New York office.
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