UPDATE: White House: No Comment On GM Execs' Stock Sales
13 May 2009 - 4:34AM
Dow Jones News
The White House declined to comment on the decision by some
General Motors Corp. (GM) executives to sell their shares in the
struggling auto maker, but conceded that "there's plenty in GM to
worry about."
"It's probably better that I resist the temptation to comment on
individuals' personal stock holdings except to say that the
president and the auto task force, again, want to ensure the
continuation of General Motors and to do so in a way that puts it
on that path that doesn't require continued government subsidies,"
White House spokesman Robert Gibbs said Tuesday.
Late Monday, six GM executives reported the sale of all the
company stock they owned. The biggest seller was Vice Chairman Bob
Lutz, according to filings with the Securities and Exchange
Commission. He sold 81,360 shares for $130,990.
The news helped send GM shares to their lowest level since 1933
Tuesday as investors bet the company is likely to lose its fight to
stave off bankruptcy. Chief Executive Fritz Henderson said Monday
that a bankruptcy is "more probable."
The company faces a government-imposed June 1 deadline to reach
a pact with workers and creditors that keeps it out of bankruptcy
court.
Gibbs said President Barack Obama and his automotive task force
are still working for a deal that saves the company.
"The task force will continue to work with GM to get a plan that
they believe puts it on a sustainable path, while at the same time
the president works to improve the economy," the spokesman
said.
GM's stock recently traded at $1.10, down 33 cents, or 23%.
Pressed again to comment on the stock sales and the message they
send to the public, Gibbs said, "There's plenty in GM to worry
about" with the June 1 deadline looming.
-By Henry J. Pulizzi, Dow Jones Newswires; 202-862-9256;
henry.pulizzi@dowjones.com