General Motors announced that it would start buyback of shares worth $ 5 billion, reports Market Watch. GM announced plans in the future to repay the entire excess free cash flow to shareholders.
The move prompted investor Harry Wilson to withdraw its application for accession to the Board of Directors of avtoprozivoditelya and give up its claim to repurchase shares worth $ 8 billion to the General Meeting of Shareholders in 2016
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Redemption, in combination with additional $ 5 billion dividend in 2017 is planned to be completed before the end of 2016. It is part of the company’s commitment to maintain its balance sheet in the investment grade and the new Celan is a cash balance of $ 20 billion (lower than current), while the surplus above it will be distributed to shareholders.
“GM is progressing with its comprehensive framework for the allocation of capital as a constructive dialogue with our shareholders ensure that we treat this key initiative with the appropriate level of clarity and transparency,” said CEO Mary Barra.
Although the agreement is a victory for Bara, Wilson’s actions underline the growing disappointment with the deadlock in company share prices. GM’s shares closed on Friday at 36.84 dollars, and is currently traded at 37.39. In January last year, when Barra took over, they seemed to $ 40.