Tues. 10:45 a.m.: GM shareholders reject stock split
DETROIT (AP) – General Motors shareholders have overwhelmingly turned down an activist shareholder’s plan to split the company’s stock into two classes.
Only about 9 percent of the stockholders voted for the plan from David Einhorn’s Greenlight Capital hedge fund in a preliminary vote count.
All 11 GM directors also were re-elected, with shareholders rejecting the three candidates backed by Greenlight.
Einhorn proposed splitting the stock into capital appreciation and dividend classes. He says the plan would unlock the stock’s value. Despite making $42 billion since 2010 GM shares have appreciated only about 5 percent.
CEO Mary Barra says the company will promote its cost cuts, quarterly earnings and technology breakthroughs to push the stock price up.
GM shares fell just under 1 percent to $34.28 in early trading Tuesday.