, Columnists
GM's Own Tuneup Is Working
Improving profitability is better than anything shareholder David Einhorn suggested.
This article is for subscribers only.
Plenty of companies have benefited from activist shareholder proposals. But hedge-fund manager David Einhorn, bless his heart, is suggesting General Motors Co. undertake one of the silliest moves we can think of. Investors should thank CEO Mary Barra for shooting it down and rethink the situation at GM.
Shares of the Detroit automaker -- which sold about 17 percent of the vehicles bought in North America last year -- are saddled with a lower valuation than peers, which frustrates shareholders such as Einhorn given that GM has been proactive in improving profitability. It hasn't translated into stock gains, and for no clear reason.