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GM announces stock buyback deal

Mar 9, 2015

GM headquarters at the Renaissance Center in Detroit
Credit wikipedia

GM will have less cash on its books, after making a deal with an activist investor unhappy with the company's stock performance. 

GM agreed to buy back $5 billion worth of its stock, to appease investors led by Harry Wilson. Wilson was a member of the Auto Task Force in 2009 which took GM through bankruptcy. 

He'd threatened to run for GM's board as a hostile candidate, to try to force GM to make an $8 billion stock buyback. 

GM also said it would invest $9 billion in 2015, with the objective of driving a 20% or higher return on invested capital. 

Its target cash balance will be $20 billion, and the automaker also plans to return all available free cash flow to investors.