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Shareholders to settle GM’s fight with activist investor

DETROIT (AP) — General Motors’ normally tranquil annual meeting will likely be a contentious affair this year, as an activist investor targets GM’s stagnant stock price.

The nation’s No. 1 automaker has posted more than $42 billion in profits over the past seven years. Yet the stock remains near its $33 initial offering price from November 2010.

That’s led investor David Einhorn to propose splitting the stock into two classes: One for capital appreciation, the other for those who want dividends. Einhorn’s Greenlight Capital hedge fund owns 3.6 percent of GM. The automaker’s management opposes the proposal as too risky.

The fight will be settled Tuesday at the annual meeting when shareholders vote on the proposal and also elect company directors. Greenlight has nominated three of its own candidates to the board.

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