GM to record $800 million charge after redeeming preferred shares

DETROIT (Bloomberg) -- General Motors will record a charge of about $800 million in the fourth quarter to redeem all 156.1 million of its outstanding Series A preferred shares.

The automaker will spend $3.9 billion for the shares held by the United Auto Workers Retiree Medical Benefits Trust and Canada General Investment Corp.

The stock had a liquidation preference of $25 a share and accrued cumulative dividends equal to 9 percent annually, the company said.

The move will simplify GM's quarterly financial reporting and close a chapter on the company's 2009 bankruptcy and restructuring, which was funded by the Canadian trust and the U.S. Treasury.

GM shares declined less than 1 percent to close at $34.91 in New York trading on Wednesday.

Shares in the automaker, which set a record for U.S. recalls with about 27 million cars and trucks called back last year, dropped 15 percent in 2014 even as its U.S. sales have been the strongest since 2007.

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