(Bloomberg) -- General Motors Co. suspended its dividend and the share-buyback program activist investors fought for over the last half decade as the largest U.S. automaker seeks to preserve cash in the midst of the pandemic shutting down much of the global car industry.The measures were a condition for GM to amend a credit agreement with banks so that its $3.6 billion revolver now matures in April 2022, extending it by a year. The moves announced Monday follow other cash-preservation measures taken at the beginning of this month, when the company deferred 20% of salaried workers’ pay, cut top executives’ compensation and put 6,500 employees on leave.Chief Executive Officer Mary Barra first announced a major buyback in 2015 after fending off an activist campaign by a former Treasury Department official who was representing several hedge funds. She expanded the program to as much as $14 billion two years later in the...
As the number of cases of coronavirus begin to plateau, several states across the United States debate when businesses can begin to reopen. Yahoo Finance's Editor-in-Chief Andy Serwer breaks down the details. ...
Activist firm Hestia Capital is urging shareholders to vote for change and elect its two nominees to the board of directors when GameStop (GME) holds its annual shareholder meeting in mid-June. The stock is currently trading up 6% in pre-market trading on Monday.The firm, which owns approximately 7.2% of GameStop shares, also sent shareholders a letter setting out why it believes GameStop’s recent board refreshment is insufficient.According to Hestia, too many GME directors come from traditional retail backgrounds and “the Board must add stockholder-aligned directors that have the financial acumen, turnaround experience and stockholder perspective to drive real change at GameStop.”Looking forward, Hestia also highlighted the steps it believes the company must take to maximize value for stockholders, writing “the nominees will push the Company to reduce its bloated cost structure, fix misaligned executive compensation, quickly address liquidity concerns, focus on optimizing its unique gaming assets, and create a positive narrative...
Whitney Tilson Warns Netflix Longs Former fund manager Whitney Tilson has been busy recently. In addition to offering his readers a deal on toilet paper and other household goods, and “partnerships” in his newsletter, Tilson also warned them about holding Netflix Inc (NASDAQ:NFLX) at current levels: The first-quarter results were impressive in terms of net […]...
(Bloomberg) -- Berkshire Hathaway Inc.’s annual meeting, which normally draws thousands to Omaha, Nebraska, will be a slimmed-down affair this year.Warren Buffett, chairman and chief executive officer of the conglomerate, and Greg Abel, vice chairman of non-insurance operations, will be the only directors physically present at the meeting, Berkshire said in a statement Monday. That means Charlie Munger, Buffett’s longtime business partner, and Ajit Jain, who’s vice chairman of insurance operations and considered one of Buffett’s potential successors, alongside Abel, won’t attend.As the coronavirus pandemic began to spur public-gathering restrictions and business shutdowns across the U.S., Buffett said in mid-March that Berkshire would only hold the meeting via a virtual setup this year, an action the billionaire investor said he “very much” regretted. “We will greatly miss seeing our shareholders in Omaha this year,” Berkshire said Monday.Buffett and Abel will field shareholder questions for the meeting on Saturday, May 2, starting...
