(MENAFN) General Motors has headed off a potentially divisive proxy fight by agreeing to a USD5 billion stock buyback that starts immediately and will close by the end of next year, Gulf News reported.
The move announced Monday before the markets opened is part of a deal with a former member of the government task force that restructured GM coming out of its 2009 bankruptcy. In exchange, he agreed to withdraw his hostile candidacy for the Detroit automaker's board of directors.
Wilson had accused GM of hoarding cash to the detriment of shareholders. He had sought a USD8 billion buyback and a seat on the board.
GM, which had USD25.2 billion in cash at the end of last year, now says it will maintain a cash balance of USD20 million and keep its investment-grade status.
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