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GM Board Remains Resolute in Fight With Greenlight

Company points to reports condemning stock split proposal.

by on May.31, 2017

David Einhorn, head of Greenlight Capital, wants GM to split its stock into two classes. He believes the move would nearly double the company's stock price.

General Motors is reminding shareholders this week that the incumbent board of directors has the support of two groups that advise institutional investors, such as pension funds, on how to vote on resolutions presented by shareholders.

Both Institutional Shareholder Services and Glass Lewis, two organizations that advise on proxy issues, have recommended that GM shareholders vote for the GM Board’s director nominees and against a proposal from New York-based Greenlight Capital that would divide GM stock into two new classes.

Beyond the Headlines!

Greenlight maintains that its proposal will “unlock” the true value of GM’s shares, which have seen little appreciation since it was issued anew after the company’s 2009 bankruptcy despite substantial spending on share buybacks and hefty dividend payments. (more…)