GM re­jects res­cue pro­posal

The Star Early Edition - - NEWS -

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.

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