Jefferies Maintains Hold, $25 PT on General Motors on Restructuring Talks with German Union

Jefferies reiterates its Hold rating and price target of $25 on General Motors

as the company looks to restructure inside contractual obligations. Jefferies comments, "GM disclosed it is currently negotiating with German labor union IG Metall to delay closing the Bochum plant by an additional year in exchange for a wage freeze in the near term. We estimate the freeze could save GME roughly $50mn to $64mn once effective. Critics of the agreement would likely argue it underscores how entrenched the European unions are. We anticipate a broader restructuring plan at the Opel board meeting on June 28." GM closed at $27.81 on Wednesday.