Greenlight's Einhorn: GM share plan would preserve automaker's cash
DETROIT, April 12, Hedge fund manager David Einhorn told Reuters that a key issue in his proxy fight with General Motors Co is the automaker's refusal to allow credit rating agencies to formally rate his plan to restructure GM shares.
Einhorn said in an interview that GM has refused to allow Greenlight to present to credit rating agencies its proposal to split GM stock into two classes: one that pays a dividend and one tied to GM's potential growth.
GM has said the plan would put the company's investment grade credit ratings at risk. Einhorn countered that his plan would give GM more flexibility to retain cash at a time when U.S. auto sales are softening. [Hedge fund manager David Einhorn told Reuters on Tuesday that a key issue in his proxy fight with General Motors Co is the automaker's refusal to allow credit rating agencies to formally rate his plan to restructure GM shares.]
"We think the credit rating process has been unfairly manipulated," Einhorn said. "We call on GM to allow us to work directly with the credit rating agencies."
(Reporting by Joe White; Editing by Matthew Lewis)