Saturday January 16, 2021

updated - January 16, 2021 Saturday EST

General Motors Ends Proxy Dispute With Activist Investors, Agrees To Buy Back $5 Billion Worth Of Its Stock

Mar 09, 2015 06:17 PM EDT | By Michael Smith
General Motors Ends Proxy Dispute With Activist Investors, Agrees To Buy Back $5 Billion Worth Of Its Stock
(Photo : Getty Images, Robert Marquardt)

General Motors officials have decided to buy back $5 billion worth of its own stock, CBS reports, putting an end to an ongoing feud with activist shareholders. 

"A foundational element of our approach will be to return all available free cash flow to shareholders, while we maintain an investment grade balance sheet that is underpinned by a target cash balance of twenty billion," said General Motors Chief Executive Officer Mary Barra said, according to the site. 

The above-mentioned cash flow is said to satisfy upcoming expansion plans and emergency funds. 

The activist shareholders were in pursuit of a buy back sponsored by General Motors worth $8 billion while asking for former Auto Task Force member Harry Wilson to join the board of trustees. Wilson, however, is said to have reconciled those aspirations, ending his plans for assuming a seat on the board of trustees. 

General Motors' buy back is expected to reward stockholders with augmented prices of individual shares. 

"Today's announcement by General Motors represents the culmination of a constructive dialogue between our investor group, senior management and the Board," Wilson said, CBS also reports. 

"As a result of this dialogue, we have arrived at a win-win outcome that includes a thoughtful approach to critical capital allocation issues and other important measures to increase long-term shareholder value."

General Motors was founded in 1908 and is headquartered in Detroit. 

Get the Most Popular Franchiseherald Stories in a Weekly Newsletter
© 2015 Franchise Herald. All rights reserved.

Connect With Franchise News

Email Newsletter


  • RANK
  • 1nc
    Hampton Hotels
    $3.7M - 13.52M
  • 2nc
    $85.2K - 260.35K
  • 3up
    Jiffy Lube Int'l. Inc.
    $196.5K - 304K
  • 4down
    7-Eleven Inc.
    $30.8K - 1.64M
  • 5up
    $103.55K - 196.5K
  • 6up
    Anytime Fitness
    $56.3K - 353.9K
  • 7down
    $133.05K - 181.45K
  • 8down
    Denny's Inc.
    $1.18M - 2.4M
  • 9down
    $1M - 2.16M
  • 10down
    Pizza Hut Inc.
    $295K - 2.15M
Real Time Analytics