DETROIT – General Motors Co. Chief Executive Mary Barra spent last weekend convincing a group of investors that a planned $5 billion share buyback is in the best interests of shareholders.
The disclosure of the buyback, on Monday, follows a month of discussions with former hedge-fund manager Harry J. Wilson. Representing a group of hedge funds owning about 2 percent of GM ?s stock, including Appaloosa Management. Wilson asked for a board seat and an $8 billion buyback, Bloomberg Business News.Com reported.
Wilson?s role as one of the Treasury Department?s chief architects of GM?s taxpayer-funded restructuring added heft to his approach. But Barra said a share buyback was in process before Wilson?s demands arose.
?We were on a path to do this anyway,? she told reporters Monday. She said GM is ?pleased? Wilson has dropped his demands, and her management team will continue to work to be ?responsible stewards of our owners? capital.?
