General Motors shareholders today elected all of the company’s board nominees, overwhelmingly turning down a slate proposed by hedge fund Greenlight Capital and handing a significant defeat to billionaire investor David Einhorn’s bid to divide the company’s shares.
Initial outcomes revealed over 91 percent of investors voted against Greenlight’s proposition to have automaker’s offer dividend and capital appreciation shares, as per GM authorities at the automaker’s yearly shareholders’ meeting.
Automaker’s nominees were elected with between 84 percent and 99 percent of the vote.
Greenlight founder David Einhorn drifted his proposal back in March, stating it could improve the automaker’s $52 billion market capitalization by $38 billion.
However right at the outset, rating firms stated Einhorn’s strategy could negatively affect the automaker’s credit rating and he failed to rally other shareholders to his cause. Warren Buffett’s Berkshire Hathaway remained conspicuously quiet on the proposition.
Proxy consultants Institutional Shareholder Providers and Glass Lewis had likewise suggested GM shareholders vote for the automaker’s board nominees and versus the dual-class proposition.
Einhorn made his proposition as U.S. auto market sales of brand-new automobiles have actually started to wane after a boom cycle that has actually lasted given that 2010.
In comments before the shareholder meeting, GM CEO Mary Barra acknowledged Greenlight’s point on its stock price, stated “we do believe GM stock is underestimated,” but restated the company’s opposition to the hedge fund’s proposition.
“After cautious, comprehensive and objective analysis, we chose this (Greenlight’s proposition) was not on the best interest of our investors,” she stated.
She included that the company will continue to focus strongly on returning value to investors.
Barra also stated that regardless of the Trump administration’s choice to withdraw from the Paris climate deal, the automaker will continue to push to decrease emissions.