UPDATE 3-U.S. Treasury to sell more GM shares as it winds down stake
* Treasury's share sale to be part of larger offering
* Sale to coincide with re-entry of GM into S&P 500
* Government likely to lose billions on automaker's bailout
* Treasury needs to sell rest of stake at about $78/shr to break even
By Margaret Chadbourn and Ben Klayman
WASHINGTON/DETROIT, June 5 (Reuters) - The U.S. Treasury Department on Wednesday announced plans to sell 30 million shares of General Motors Co common stock as part of its ongoing effort to wind down the government's stake in the bailed-out automaker.
The Treasury said it would sell the shares in a public offering in conjunction with the company's inclusion to the Standard & Poor's 500 index on June 6, which should help spur demand for the stock.
The offering will take place along with the sale of 20 million shares of GM stock held by the UAW Retiree Medical Benefits Trust, bringing the total size of the sale to 50 million shares, it said.
The exit of Treasury also will eliminate the stigma of government ownership - some critics dubbed the company "Government Motors" - that GM executives said has hurt sales. Continued...