GM Avoids Shareholder Fight, Will Buy Back $5 Billion in Shares

is up sharply in premarket trading following an announcement this morning of a new capital plan. The move was a response to fights from activist investor Harry Wilson, who previously launched a proxy fight for a board seat. As a result of the $5 billion share buyback plan, Wilson will back down.

In their

GM said that it is targeting a cash balance of $20 billion and will return all available free cash flow to shareholders, beginning with the $5 billion in share repurchases. The company will also target 20 percent return on its capex.

The company will hold a conference call at 8:30 a.m. ET to discuss the plan. The stock recently traded at $37.70, up 2.3 percent, in the premarket.