General Motors Fends Off Potential Proxy Fight With $5 BILLION Buy Back

...G.M. on Monday moved to defuse a potentially distracting battle with dissident investors by approving a plan to buy back $5 billion in stock that is intended to improve its stagnant share price.

The decision to dip into its cash reserves to finance a buyback came after weeks of discussions between G.M. and an investment group led by Harry J. Wilson, a member of the government task force that administered the company’s $49 billion bailout in 2009.

Last month, Mr. Wilson told G.M.’s chief executive, Mary T. Barra, that he was heading an effort by hedge fund investors to prod the automaker to share its $25 billion cash hoard with stockholders...

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ParadoX - 3/10/2015 8:40:54 PM

+1 Boost

I can't stand these kinds of investors. Automakers need large amounts of cash on hand because the industry is capital intensive. They are hurting GM's ability to invest in long-term viability to they can make a few bucks in the short term.