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Einhorn's Greenlight Claims GM Misled Credit Raters on Stock

  • GM calls hedge fund’s statement ‘baseless and irresponsible’
  • Greenlight nominates three director candidates for GM’s board
David Einhorn

David Einhorn

Photographer: Andrew Harrer/Bloomberg
Updated on

Billionaire David Einhorn’s Greenlight Capital doubled down on its pitch for new General Motors Co. dividend shares, saying the carmaker misrepresented the hedge fund’s proposal for a stock split to sway ratings agencies to opine against it.

GM presented “a one-sided and flawed analysis” to ratings companies, Vinit Sethi, a Greenlight partner and director of research, said in a statement. Underwhelmed by GM’s returns as a shareholder since 2011, Greenlight has nominated Sethi to serve as a director, along with private-equity firm executives Leo Hindery and William Thorndike.