GM strikes deal with investor, agrees to US$5b buyback

Detroit

GENERAL Motors will buy back US$5 billion in shares by the end of 2016, and activist investor Harry J Wilson will give up his request for a board seat after reaching an agreement with the automaker.

Mr Wilson had requested a board seat and asked the Detroit-based company last month to use some of its cash to buy back US$8 billion in shares. He was working with four hedge funds that collectively own more than 2 per cent of the stock. GM also said it will adopt a strategy to return free cash flow to shareholders while keeping investment grade credit and a minimum balance of US$20 billion.