General Motors buyback shares for 5 billion USD

The US company General Motors buyback shares for 5 billion USD. The automotive giant announced plans in the future to return the entire excess free cash flow to shareholders. The move forced the investor Harry Wilson to withdraw its application for accession to the Board of Directors of General Motors and to drop its demand for redemption of shares worth at 8 billion USD to the General Meeting of Shareholders in 2016. The General Motors buyback shares, combined with the additional 5 billion USD dividends until 2017, is planned to be completed before the end of 2016. It is part of the company’s commitment to maintain its balance sheet in investment grade, the new Celan is a cash balance of 20 billion USD (lower than current), and the surplus above it will be distributed to shareholders.

“GM is progressing with its comprehensive framework for the allocation of capital, as the constructive dialogue with our shareholders ensure that we treat this key initiative with the appropriate level of clarity and transparency”, said CEO Mary Barra.

Although the agreement is a victory for Mary Barra, as the actions of Wilson underline the growing disappointment with the deadlock in company share prices. The GM’s shares closed on Friday at 36.84 USD, and is currently traded at 37.39. In January last year, when Barra took over the company, they were at level of 40 USD.