GM plans $5B stock buyback, avoids showdown with hedge funds

DETROIT (AP) – General Motors is agreeing to a $5 billion stock buyback, heading off a proxy fight with a group of hedge funds.

The buyback is part of a deal with former Obama administration autos task force member Harry Wilson, who agreed to drop his hostile candidacy for the GM board.

GM said Monday that the share repurchase will begin immediately and finish before the end of 2016.

The company still plans to keep $20 billion in cash on its balance sheet and maintain its investment-grade credit status.

GM also announced plans to return capital to shareholders that will be announced each January.

The company had $25.2 billion in cash at the end of last year. Wilson had sought an $8 billion buyback and a seat on the board.

(Copyright 2015 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

WKBN 27 First News provides commenting to allow for constructive discussion on the stories we cover. In order to comment here, you acknowledge you have read and agreed to our Terms of Service. Commenters who violate these terms, including use of vulgar language or racial slurs, will be banned. No links will be permitted. Please be respectful of the opinions of others. If you see an inappropriate comment, please flag it for our moderators to review.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s