GM investors reject fund’s proposals
GENERAL Motors Co (GM) shareholders on Tuesday overwhelmingly rejected proposals by hedge fund Greenlight Capital to restructure the company’s stock and reshape its board, backing chief executive officer (CEO) Mary Barra’s efforts to rev up the company’s stalled share price.
Fending off the challenge from Greenlight founder David Einhorn does not mean the end of Barra’s battles.
GM shares traded on Tuesday at US$34.25 (RM146), 16 per cent lower than when Barra became CEO, despite robust profits and a series of moves to sell or shut down money losing operations.
The win also does not mean pressure will let up from Greenlight, which is the fifth largest shareholder, and while gracious in defeat, continued to make the case for fresh faces on the board.
“We are disappointed that shareholders have elected to maintain the status quo,” said Einhorn on Tuesday.
“We congratulate GM’s management on their win today.”
In comments before Tuesday’s shareholder meeting, Barra acknowledged Greenlight’s position on its stock price, saying “we do believe GM stock is undervalued”, and said the company was continually looking at ideas to increase investor interest.
Preliminary results showed more than 91 per cent of shareholders voted against Greenlight’s proposal to have GM offer dividend and capital appreciation shares, according to GM officials at the meeting.
GM’s board nominees were elected with between 84 per cent and 99 per cent of the vote, said the company.
Reuters