According to a report coming from the Wall Street Journal, the largest US automaker and the third biggest in the world, General Motors is currently negotiating with former task force member and activist investor and shareholder Harry J. Wilson.
Wilson and a consortium of hedge funds proposed recently that he joined the automaker’s management board after the upcoming June annual shareholder meeting and introduce a strategy to buy back $8 billion worth of shares in a drive to return some of its growing cash pile to investors. The discussions between the two interested parties have started in an effort to avoid a proxy fight, with the parties interested to go forward – though no certain agreement has been reached so far. A deal needs to be reached soon if Wilson would be on the proxy as the necessary documents need to be filed with the appropriate regulators ahead of the annual shareholder meeting that usually takes place in June.
Wilson, which stood on the US government appointed task force that bailed out the largest US automaker after its 2009 bankruptcy, is currently a GM shareholder and has been vocal recently, criticizing GM’s cash management and share price. General Motors said it was considering raising even more the dividends that were recently increased and has yet to be known plans to further return part of its substantial cash to the shareholders later on this year. The biggest US automaker has been seeing soaring profits and increased sales since exiting government control even as last year was embellished in a safety scandal that led to record recalls and related costs.