General Motors Avoids Shareholder Fight, Will Buy Back $5 Billion In Shares
General Motors Company (NYSE: GM) was up sharply in pre-market trading following an announcement Monday 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 its "comprehensive capital allocation framework," 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 $37.60, up 2 percent in the premarket.
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