GM plans $5B stock buyback, avoids showdown with hedge funds

[Omaha Steve]

Source: AP-Excite

By TOM KRISHER

DETROIT (AP) — General Motors has headed off a potentially divisive proxy fight by agreeing to buy back $5 billion in stock by the end of next year.

The move announced Monday is part of a deal with Harry Wilson, a former member of the government task force that restructured GM coming out of its 2009 bankruptcy. In exchange, Wilson agreed to withdraw his hostile candidacy for the Detroit automaker's board of directors.

Wilson had accused GM of hoarding cash to the detriment of shareholders and had sought an $8 billion buyback.

GM, which had $25.2 billion in cash at the end of last year, now says it will maintain a cash balance of $20 million and aim to keep its investment-grade status.

FULL story at link.


Read more: http://apnews.excite.com/article/20150309/us--general_motors-stock_buyback-aa5f924333.html

[LiberalFighter]

1. Is $20 million enough for a cash balance? Seems awfully low considering

the need for upgrades, etc.

[warrant46]

2. It's a typo

[LiberalFighter]

3. Excite News up to par?

Checked another site and you are right. At least I had the right mind to question something that didn't look right. And had the feeling it was wrong.

[warrant46]

4. Terrible what this clown Wanker is doing