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GM stockholders vote Tuesday on activist investor proposal, new board members

GM headquarters in Detroit
GM headquarters in Detroit

A battle between General Motors and an activist investorwill come to a head this week.

DavidEinhorn’s Greenlight Capitalhedge fund quadrupled its stake in GM in the first quarter of the year.    It now owns more than 3% of the automaker’s stock.  

But Einhorn is pushing for more control.  He’s behind a June 6th shareholder meeting vote to split the company’s stock, and add three outside Board members.

GM’s stock price is close to where it was when the automaker emerged from bankruptcy protection. 

Pointing to that, Einhorn says there’s a gap between GM’s sale price and the company’s value. 

GM CEO Mary Barra has sent letters to shareholders urging them to vote against the activist investors.

GM has been refocusing on profitable markets in North America and Asia, and exiting unprofitable ones like India and South Africa. 

Steve Carmody has been a reporter for Michigan Public since 2005. Steve previously worked at public radio and television stations in Florida, Oklahoma and Kentucky, and also has extensive experience in commercial broadcasting.
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