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David Welch
March 9, 2015 – 12:02 am ET
(Bloomberg) — General Motors plans to announce today that it will buy back shares and settle with activist investor Harry J. Wilson, who will give up his request for a board seat after reaching an agreement with the automaker, people familiar with the matter told Bloomberg.
Wilson had requested a board seat and asked the automaker to use some of its cash to buy back $8 billion in shares in February. He was working with four hedge funds who collectively own more than 2 percent of the stock. GM will buy back less than the $8 billion over one year that Wilson requested, one of the people said.
GM had many conversations with Wilson on Friday to reach a settlement, and the company will announce a buyback and outline other ways to create value for its investors, the people said. The people wouldn’t say how much stock GM plans to buy back. Tony Cervone, a GM spokesman, declined to comment.
