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DETROIT (AP) -- Six General Motors Corp. executives recently sold more than 200,000 shares of the automaker as GM moves toward issuing new equity to give large stakes to the U.S. government and a United Auto Workers retiree health care trust fund.
Four group vice presidents and two vice chairmen sold nearly 205,000 shares Friday and Monday at prices ranging from $1.45 to $1.61 per share. GM shares closed Monday down 17 cents at $1.44.
Spokeswoman Julie Gibson says the sales don't show a lack of faith in the company. She says GM has disclosed publicly that shareholders run the risk of significant dilution or possibly losing their investments in a potential bankruptcy filing.
Originally posted by finemanm
Can you say insider trading? It looks like the men driving the ship are running for the life boats. Good luck to you if you own GM stock. Its too bad, I really like the new Camaro.
DETROIT (Reuters) – General Motors Corp (GM.N) stock plunged more than 22 percent to a 76-year low on Tuesday, a day after GM's top executives dumped their shares as the automaker heads toward a bankruptcy or a restructuring that would all but wipe out existing shareholders.
Six GM executives, led by former GM vice chairman and product chief Bob Lutz, disclosed on Monday that they sold almost $315,000 in stock and liquidated their remaining direct holdings in the automaker.
The automaker's shares were down 22 percent, or 31 cents, at $1.13 on the New York Stock Exchange Tuesday. The stock had fallen to as low as $1.09 earlier, a price not seen since 1933 in the midst of the Great Depression.
The bondholders are protesting the terms of the offer under which they would swap their $27bn claim for a 10 per cent equity stake, while the union, with a $10bn claim, would end up with 39 per cent.