Shareholders to settle GM’s fight with activist investor
Investor David Einhorn proposes splitting the stock into two classes, automaker opposes the proposal as too risky.
DETROIT — General Motors’ normally tranquil annual meeting will likely be a contentious affair this year, as an activist investor targets GM’s stagnant stock price.
The nation’s No. 1 automaker has posted more than $42 billion in profits over the past seven years. Yet the stock remains near its $33 initial offering price from November 2010.
That’s led investor David Einhorn to propose splitting the stock into two classes: One for capital appreciation, the other for those who want dividends. Einhorn’s Greenlight Capital hedge fund owns 3.6% of GM. The automaker’s management opposes the proposal as too risky.
The fight will be settled June 6 at the annual meeting when shareholders vote on the proposal and also elect company directors. Greenlight has nominated three of its own candidates to the board.News from © Canadian Press Enterprises Inc. 2016