Posted on 03/09/2015 8:47:14 AM PDT by Olog-hai
General Motors agreed to buy back $5 billion in stock by the end of next year as part of a plan to return more cash to shareholders. In return, an activist shareholder decided to drop a potentially divisive bid for a seat on the company’s board.
The move, announced Monday, is part of a deal with Harry Wilson, a former member of the government task force that restructured GM coming out of its 2009 bankruptcy.
Wilson, who represents four hedge funds which own about 2 percent of the company, had previously accused GM of hoarding cash to the detriment of shareholders and had sought an $8 billion buyback and a board seat.
But on Monday he said he was impressed at how quickly GM’s management responded, adding that the company agreed to just about everything the funds wanted. …
(Excerpt) Read more at hosted.ap.org ...
Are these stealing asshats gonna ‘buy back’ the bonds they paid pennies on the dollar to those premium bond investors that were raped at Obama’s request?
For some reason, all Baptist preachers are Chevy fanboys. When I hear them joke about Chevy’s divine quality, I think, “Obama Motors.”
So when GM in a few years wants another bailout can the tax payers go to the likes of these Hedge Fund managers and demand the money back? GM has $30 billion in long term debt.
Thanks
Corporations tend to conduct stock buybacks when their stock price is extremely high already, but to issue shares to the market when their stock price is low. It’s literally insane.
Oh, you don't understand. A traditional bankruptcy would have been much too costly and inefficient. Obama had to step in for the good of the country. The fact that the bondholders got completely screwed and the unions emerged unscathed (they had already sacrificed SO much in earlier contract negotiations ya know!) is pure coincidence./sarc
Yes, due to the urgency of now and the exigencies of his highness’ penchants, it was right and proper they browbeat, threatened, and coerced those greedy bond holders into submission.
They should be grateful they were afforded to be bent over a conference room table and take one up the keester for the Magic Negro.
This is an evil company, and I will never deal with GM in any way. The bankruptcy was corrupt, and those with connections used federal pressure to steal from the rightful claimants on GM assets. I will not buy any GM vehicle at any price. I will not rent a GM vehicle. I will not even ride in a GM-made taxi. That company is dead to me. Forever.
Ask any liberal or “undecided” (spit) voter, and they will say with all due assurance, that GM has made good on all the loans they took out.
I feel exactly the same way.
It’s been almost six years, and time is not healing that wound in any way. The only healing would come from GM going under, and I pray that healing will come soon.
The resolution is very simple: stop structuring contracts to manufacture total vehicles.
A UAW contract is established according to production costs. If the contract is assumed to manufacture a certain amount of vehicles such that the employees are productive over that amount, then they get the contract value.
GM, as the payor of that contract is now saddled with any excessive of vehicles and must “eat” that same.
In a home environment: if a I make 15 loaves of bread because my children indicated that they cannot exist at their school with any less, what do I do with the 5 loaves left over at the end of the school year?
GM must restructure and the UAW must agree to the terms. I won’t significantly miss GM...
if you will look at federal, state, and local governments across the nation you will see that most all of them have replaced all or just bought new additional vehicles in the last 3 or 4 years...when everyone or most all of them are in deficit spending situations...amounting to make work...from GM or Chrysler just to keep the unions afloat - all just moving the pea around - mostly law enforcement crap vehicles to police us down when the time is right!
I agree, however my paid off truck was owned prior to the bankruptcy and still runs great. It is also set up to tow the 5th wheel. I am not interested in a car loan so I’m keeping it for now.
Next truck is NOT going to be a GM nor will any vehicle be purchased from them.
When I think of my tax dollars being used to prop up scumbag unions, which are the most anti-American, destructive forces in our society, it just makes me see red.
I found out the “stimulus” was being extensively used here in Massachusetts, to pay for top-notch health care benefits for teachers unions in one of the wealthiest (if not the wealthiest community) in the state.
Millions of dollars, and that was only in one single town that I researched. I guess they never thought anyone would actually use that government information they put on the stupid transparency website, and if they did, everything would be so obfuscated, they would never figure it out.
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