GM shareholders reject proposal to split stock in 2

Shareholders to settle GM's fight with activist investor

Preliminary results showed more than 91 percent of shareholders voted against Greenlight's proposal to have GM offer dividend and capital appreciation shares, according to GM officials at the meeting.

Shareholders also overwhelmingly voted down Mr. Einhorn's slate of three proposed directors, instead opting to re-elect 11 incumbent directors backed by the USA auto giant.

The Greenlight Capital hedge fund is among institutional investors that have pushed GM to return more of its cash reserves to investors. She still has to find a way to boost GM's stock, which still trades around its 2010 initial public offering price.

"That's a stake that we put in the ground and now we plan to move that back", Barra said at a press conference held prior to GM's annual shareholders meeting. "We are disappointed that shareholders have elected to maintain the status quo".

Over several months, Einhorn vigorously argued that his scheme would unlock billions in value for GM shareholders.

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But GM CEO Mary Barra said in a letter to shareholders that there's no evidence that Greenlight's plan will work and there may not be any demand for the new stock.

Einhorn's challenge, which included an attempt to elect three board members nominated by Greenlight, was never considered a threat to GM management. At just above $34, GM's share price remains some 16% below where it was when Barra become CEO, according to Reuters, while Tesla hits new highs and is up nearly 100% since December 1.

Barra suggests the shareholders' proposals are not a distraction to the company. GM's market valuation of $51.8 billion trails Tesla Inc.'s $57.6 billion valuation, an indication that Wall Street prizes future growth opportunities over near-term profit. He congratulated the management team on its latest "win". That includes last year's roughly $1 billion acquisition of autonomous-vehicle developer Cruise Automation, which helps GM's attract tech talent and equip the auto maker to combat Alphabet Inc. and other tech companies looking to compete in the car business.

GM said it remained committed to its strategy.

In response to a question from reporters about the Trump administration's decision to drop out of the Paris climate accord, the auto executive said GM remains sensitive to environmental concerns and continues to take steps to reduce vehicle emissions and use renewable energy to power its factories.

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