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GM shareholders vote to retain investment structure, won't split stock

Staff Writer | June 6, 2017
General Motors stockholders overwhelmingly rejected a plan to split the company's stock into two categories, the company announced Tuesday.
General Motors
Auto industry   GM stock is currently in the $33 per share range
Nine percent of shareholders voted in favor of a proposal by activist investor David Einhorn to offer two classes of equities to potentially yield tens of billions of dollars in shareholder value.

Proxy voters and attendees at GM's annual shareholders' meeting in Detroit on Tuesday also rejected three candidates backed by Greenlight Capital Inc., Einhorn's group, to seat three of its candidates on GM's board of directors.

Einhorn proposed dividing the outstanding stock into two groups: one receiving dividends and one participating only in growth and earnings.

"We decided 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 disappointed that shareholders have elected to maintain the status quo."

GM stock, currently in the $33 per share range, has risen only slightly in the past six years, despite the company's record earnings.