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VEBA Stock Sale May Cost UAW Seat on GM’s Board

If union sells 40 million shares, it falls below threshold for board seat.

by on Feb.28, 2018

Former UAW VPsJoe Ashton resigned from the GM's Board after investigators questioned him about the FCA/UAW training funds scam.

General Motors Co. announced the United Auto Workers Retiree Medical Benefits Trust, aka the VEBA Trust, intends sell 40 million shares, or about 29% of the trust, of GM common stock in an underwritten secondary offering.

The VEBA will receive all of the proceeds from this offering, which could raise as much as $1.6 billion. No shares are being sold by GM; however, the automaker plans to buy $100 million worth of the available shares. With a stock price hovering just above $40 a share that equates to about 2.5 million shares.

Union News!

But the sale, which is covered by rules set down following GM’s 2009 bankruptcy, could end the union’s presence on the company’s board of directors. The union must retain 50% of the shares it received as part of the bankruptcy plan. (more…)