World Economy

Proposal Premature

Proposal PrematureProposal Premature

United Auto Workers President Dennis Williams, whose union indirectly controls the largest single block of General Motors Co shares, told Reuters an investor group’s proposal that GM buy back $8b of its stock is premature, and the amount too high for the company’s long-term health. An investment firm controlled by Harry Wilson, a former member of the US government task force that restructured GM through bankruptcy in 2009, together with four other hedge funds, is urging it to return part of its roughly $25b cash trove to shareholders. Williams, who said he met Tuesday with Harry Wilson to discuss the proposal, left open the possibility that he could endorse a smaller share repurchase.