Submitted by Mark Modica on Wed, 02/11/2015 - 07:20
Harry Wilson, the nemesis of General Motors bondholders who were wiped out in the government-orchestrated GM bankruptcy, is back on the scene. On the front page of today's Wall Street Journal, Wilson is portrayed as an "activist" investor, who seeks to maximize shareholder value. While his suggestion that GM buy back $8 billion of common shares would give a temporary boost to share price, Wilson's motivations may not be entirely pure. His real agenda could be to expand the already-favored position of UAW shareholders, and to bolster the political fortunes of unions in general.
Here's the deal, GM has announced that Wilson is nominating himself for a seat on GM's Board of Directors "and bring before the annual meeting a proposal that the company commit to completing $8 billion of share repurchases on or before the first anniversary of the 2015 annual meeting." I'll bet that most of those shares will be bought, likely at a premium, from the UAW, which still holds about 140 million shares (over $5 billion worth).
The entire GM bankruptcy was a giant govt. manipulated pay off to the UAW.
The list, Ping
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I think I’ll go down to the Chevy Dealer and get my Taxpayer Subsidized Pickup for two hundred bucks.
What?
So SOMETIMES they don’t believe in government buyouts. What if I started a union?