GM Plans 1-for-100 Reverse Stock Split
May 6th, 2009WARNING: This is not a recommendation to buy, sell or hold any financial instrument.
Shorts drool and autoflagellate with anticipation.
Via: AP:
General Motors Corp. notified shareholders Tuesday it is planning a reverse stock split that would give them one share of new stock for every 100 shares they currently own.
The automaker said in a filing with the Securities and Exchange Commission that the deal would be part of an agreement with the Treasury Department in which the government would assume at least half of GM’s debt in exchange for company shares. GM will send the information to shareholders currently holding a total of 610.5 million outstanding shares.
GM spokeswoman Julie Gibson said the company is merely notifying shareholders of what it may do if it reaches deals to swap debt for stock with the Treasury Department and bondholders. The company, she said, is not making an offer to shareholders.
