GM shareholders to rule on stock plan

Greenlight Capital’s plan to split up General Motors stock as well as its challenge to the carmaking firm’s board of directors, will come to a head today, as GM shareholders cast their votes on the hedge fund’s proposals.

Greenlight’s proxy contest comes during a major overhaul at GM as chief executive Mary Barra seeks to jolt the US company’s lagging stock price and sales by slashing costs and refocusing on the most profitable markets.

In the latest sign of the challenges facing major producers of vehicles, rival Ford Motor Company last month replaced its chief executive, Mark Fields, with Jim Hackett, a reformist executive who had run one of its divisions, following a decline in Ford’s North American profits and share price.

Shareholders will vote on a Greenlight plan to divide GM shares into two classes, which fund founder David Einhorn had said could boost GM’s $52-billion (R718-billion) market cap by $38billion (R525-billion).

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