SAN FRANCISCO (MarketWatch) — General Motors Co. said Friday that the underwriters of the company’s recent public offering exercised in full their overallotment options to purchase an additional 71.7 million shares of common stock from the selling stockholders. At $33 each, that’s $2.37 billion. The underwriters also bought an additional 13 million shares of mandatory convertible junior preferred stock from GM, for a total of $650 million. The convertible offering was done at the same time as the common-stock sale, which returned GM to the stock market after the U.S. government’s bailout and a bankruptcy reorganization. The exercise of the overallotment options brings the total offering size to $23.1 billion, according to GM. Before the overallotments, the auto maker had raised just more than $20 billion.
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Is it advisable to hold on to the shares of GM for someone with a buy and hold strategy or is it better to get out of it ?