Hedge fund manager David Einhorn informed Reuters that a major concern in his proxy fight with General Motors is the automaker’s disregard to allow credit rating agencies to officially rate his strategies to restructure GM shares.
Einhorn stated that GM has rejected to allow Greenlight to present to credit rating agencies its proposition to split GM stock into two categories: one that pays a dividend and one tied to automaker’s potential growth.
GM has stated the plan would be a threat to the company’s investment grade credit ratings. Einhorn countered that his plan would provide GM more accuracy to retain cash at a time when American auto sales are sluggish.
“We think the credit rating process has been unfairly manipulated,” Einhorn stated. “We call on GM to allow us to collaborate directly with the credit rating firms.”
