General Motors confirmed Tuesday that a former adviser to the Obama administration's auto industry task force is seeking nomination to the company's board of directors, as well as an $8 billion share buy-back.
Harry J. Wilson DETROIT, MI - General Motors confirmed Tuesday that a former adviser to the Obama administration's auto industry task force is seeking nomination to the company's board of directors, as well as an $8 billion share buy-back.
A 95-page filing says that Harry Wilson is acting on behalf of himself and four investment funds, including Taconic Parties, Appaloosa Parties, HG Vora Parties and the Hayman Parties. Those four groups own about 34.4 million shares, or about 2.1 percent of GM's common stock.
Wilson, 43, retired from investment banking at the age of 36, and later was a close adviser for Pres. Barack Obama's auto industry crisis task force, led by Steve Rattner, that guided GM into bankruptcy in 2009.
Wilson first expressed interest in being nominated to the company's board of directors at a meeting with CEO Mary Barra on Feb. 3, according to GM.
He disclosed the identities of the group of investors backing him just before midnight Monday, though GM said it has received no indications of interest in nominating directors to the GM board from the investment groups, including in conversations as recent as Feb 4, when the company most released its 2014 financial results.
"The Board's Directors and Corporate Governance Committee will evaluate the proposed director nominee based on the criteria set forth in the company's Corporate Governance Principles and Director Qualification Standards and make a recommendation based on the best interests of all shareholders," GM said in a release. "GM shareholders are not required to take any action at this time."
The move is seen by analysts as investors growing impatient with GM's relatively low stock price, which could be boosted by such a buy-back. The news of the proposal by Wilson and the hedge funds sent GM's stock trading higher on Tuesday afternoon.
GM noted Tuesday that it recently raised its dividends 20 percent to 36 cents per share.
Last week, GM reported net income of $2.8 billion for 2014, down from $3.8 billion in 2013, but still marking the Detroit automaker's fifth straight year of profitability.
The company's bottom line was hit in part by pre-tax costs of $2.8 billion related to recalls and other special items. Earnings before interest and taxes were $6.5 billion, compared with $8.6 billion in 2013.
GM's full-year net revenue rose slightly to $155.9 billion, compared to $155.4 billion in 2013.
David Muller is the automotive and business reporter for MLive Media Group in Detroit. Email him at dmuller@mlive.com or follow him on Twitter