Business
GM Plans $5 Billion Share Buyback, Averts Proxy Fight
(AP Photo/David Goldman, File)
Joe White, REUTERS
DETROIT (Reuters)—General Motors Co. said Monday it would launch a new, $5 billion share buyback in an agreement with dissident investors, and put forward a more detailed plan for capital allocation that promises investors the potential for further cash returns.
GM said it had reached a deal with an investor group that averts a proxy fight over its balance sheet and governance. As part of the agreement, investor Harry Wilson will drop his effort to get a seat on GM’s board.
Wilson on Monday praised the company’s capital plan, which offers investors a more transparent view of GM’s cash investment proposals than previously disclosed.
GM also confirmed Monday it will boost its quarterly dividend to 36 cents a share from 30 cents previously. It had disclosed plans to raise its dividend last month.
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