GM Plans $5 Billion Share Buyback, Averts Proxy Fight

GM Plans $5 Billion Share Buyback, Averts Proxy Fight

In this Thursday, Jan. 10, 2013 file photo, the logo for General Motors decorates the entrance at the site of a GM information technology center in Roswell, Ga. GM is recalling 2.6 million small cars worldwide to replace ignition switches that suddenly can slip out of the run position and shut off the engine.  (AP Photo/David Goldman, File)
(AP Photo/David Goldman, File)

Joe White, REUTERS

 
DETROIT (Reuters)—General Motors Co. said Monday it would launch a new, $5 billion share buyback in an agreement with dissident investors, and put forward a more detailed plan for capital allocation that promises investors the potential for further cash returns.

GM said it had reached a deal with an investor group that averts a proxy fight over its balance sheet and governance. As part of the agreement, investor Harry Wilson will drop his effort to get a seat on GM’s board.

Wilson on Monday praised the company’s capital plan, which offers investors a more transparent view of GM’s cash investment proposals than previously disclosed.

GM also confirmed Monday it will boost its quarterly dividend to 36 cents a share from 30 cents previously. It had disclosed plans to raise its dividend last month.

 

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