An editorial in the Harvard Business Review heavily criticizes GM for bowing to a group of activist investors and buying back $8 billion in stock. The piece rails against the idea of these buybacks in general.
General Motors has retained Goldman Sachs and Morgan Stanley for "advice" on how to respond to activist investor Harry J. Wilson. He leads a group of four investment funds who want GM to spend $8 billion on a share buyback to raise its stock value, and he wants a seat on the board.
The United Auto Workers currently doesn't have any representation on the boards of General Motors, Chrysler and Ford, but boss Bob King apparently wants to change that. TheDetroitBureau.com is reporting that King and co. would like to add union representation to boards, and the UAW chief is looking to Germany for inspiration. German automakers adhere to a co-determination law that requires automakers to have union representation on the Board of Supervisors of each company.
Now that Saturn is tentatively going to Roger Penske, Stephen Girsky has got some free time on his hands. Girsky, who was one of Rick Wagoner's advisors for a brief time and recently helped GM select Penske as a buyer for Saturn, has been around the automotive block analyzing the industry for Morgan Stanley as well as working at Centerbridge Partners in recent years. His tenure with Centerbridge Partners was during the time that this equity concern was trying to snatch Chrysler from the clutches
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