GM rejects rescue proposal
GENERAL Motors (GM) yesterday rejected proposals by hedge fund Greenlight Capital to restructure the company’s stock and reshape its board, backing Chief Executive Mary Barra’s efforts to rev up the company’s stalled share price. Seeing off the challenge from Greenlight manager David Einhorn does not mean the end of Barra’s challenges. GM shares traded yesyerday at $34.25 (R439.54) a share, about 16 percent lower than when Barra became CEO, despite robust profits and a series of moves to sell or shut down money losing operations. Silicon Valley electric vehicle maker Tesla this year surpassed GM’s market value, reflecting investor confidence that, despite heavy losses, Tesla Chief Elon Musk has a better strategy as the auto industry shifts to ride services and electric vehicles.