Ex-Obama adviser seeks seat on GM board to raise price

Source: Detroit News

David Shepardson and Melissa Burden, The Detroit News 10:02 p.m. EST February 10, 2015
dshepardson@detroitnews.com

A former Obama administration auto adviser who helped engineer General Motors’ bankruptcy and bailout wants to join the automaker’s board — with the backing of four hedge funds — and convince the company to buy back $8 billion in shares.

Harry Wilson, who was a senior member of the auto task force that pushed GM into bankruptcy in 2009 as part of a $49.5 billion bailout, said he plans to seek election by shareholders to the board at the company’s 2015 annual meeting. He wants the automaker to repurchase $8 billion in stock by mid-2016. The effect of a buyback would be to boost the value of the remaining shares.

In an interview with The Detroit News Tuesday, Wilson said he thinks GM is holding on to way too much cash. He said that even with an $8 billion buyback, GM should still have $20 billion on hand by next year. He said the hedge funds are “prepared to take our case to where we need to,” but said it isn’t clear if GM will agree to appoint him to the board.

Wilson is working with four investment funds that support his election and proposal: Taconic Parties, Appaloosa Parties, HG Vora Parties and the Hayman Capital hedge fund founded by J. Kyle Bass. Together, they own approximately 34.4 million shares, or 2.1 percent of GM.

Read more: http://www.detroitnews.com/story/business/autos/general-motors/2015/02/10/harry-wilson-gm/23163741/