Proxy fight over GM stock heats up ahead of an­nual meet­ing

Cape Breton Post - - News | Business -

DETROIT - Shares of Gen­eral Mo­tors are ris­ing as a proxy fight es­ca­lates be­tween the com­pany and an ac­tivist share­holder who wants to split its shares into two classes.

David Ein­horn’s Green­light Cap­i­tal said Tues­day that it’s send­ing a let­ter to share­hold­ers em­pha­siz­ing that the stock price has barely grown since GM’s ini­tial pub­lic of­fer­ing at $33 seven years ago. GM pointed out last week that two in­de­pen­dent, cor­po­rate eval­u­a­tion firms, ISS and Glass Lewis, rec­om­mended against the pro­posal.

Shares of GM rose 1 per cent to $33.40 shortly af­ter the open­ing bell. Green­light’s plan would cre­ate one div­i­dend-pay­ing stock and one “cap­i­tal al­lo­ca­tion” stock de­signed for growth. GM says the stock split is too risky.

A vote will take place in one week at the an­nual share­hold­ers meet­ing on June 6.

Newspapers in English

Newspapers from Canada

© PressReader. All rights reserved.