GM Investors Give Red Light To Einhorn's 2-Stock Class Plan

GM’s Barra says automaker’s future will leverage core business emerging technologies

"We have to keep earning our way", Barra says ahead of GM's annual meeting here, where a proposal from major shareholder Greenlight Capital to divide the company's stock into separate share classes was soundly defeated. They also re-elected all 11 GM board members, rejecting the three candidates backed by Greenlight. The effort came two years after a group of hedge funds successfully persuaded GM to return $5 billion to investors in the form of buybacks and to more regularly return cash. GM shares have appreciated only about 4 percent since the company returned to the public markets in November of 2010 after bankruptcy.

"We chose to bring a creative idea to GM's shareholders and nominate directors to help fix GM's inefficient capital structure and unlock significant value for all shareholders", said Einhorn said in a statement Tuesday.

"We are going to continue to look to differentiate ourselves", she said.

Over several months, Einhorn vigorously argued that his scheme would unlock billions in value for GM shareholders.

Shares of GM were little changed at $34.43 on Tuesday.

Apple Watch to get new features, Siri to be more intelligent
The Siri face will deliver information to the user depending on what time it is and what events the user has lined up for the day. Apple watchOS 4 with Siri watch faceSiri intelligence extends further into Apple Watch with the new Siri watch face .

Einhorn proposed splitting the stock into capital appreciation and dividend classes.

Elsewhere, GM CEO Mary Barra appeared elated by Tuesday's results. The automaker hired two leading consulting firms to evaluate the Greenlight proposal and both deemed it unfavorable, as did a pair of investment-credit houses. GM's market valuation of $51.8 billion trails Tesla Inc.'s $57.6 billion valuation, an indication that Wall Street prizes future growth opportunities over near-term profit. That includes last year's roughly $1 billion acquisition of autonomous-vehicle developer Cruise Automation, which helps GM's attract tech talent and equip the auto maker to combat Alphabet Inc. and other tech companies looking to compete in the car business.

"After careful consideration, we determined that Greenlight's proposal is not in the best interest of our shareholders", GM CEO and Chairman Mary Barra told media prior to the annual meeting starting.

Barra also said despite the Trump administration's decision to withdraw from the Paris climate deal, the automaker will continue to push to reduce emissions.

Barra said 2016 was a very good year for GM, despite the decision to exit the European market with the sale of Opel to PSA and to re-organize its worldwide operations by dropping out of the market in India.

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