David Einhorn Pushes GM Over Dividend

The transcript discusses David Einhorn's investment approach, focusing on his involvement with GM through Greenlight Capital. Einhorn, known for short selling, is not typically an activist investor. His strategy involves issuing common shares and leveraging GM's earnings and dividends to unlock value. However, this approach faces risks, including potential liquidity issues and resistance from rating agencies. Shareholder support is uncertain, as past activist efforts have not always succeeded. The discussion highlights the complexities and challenges of Einhorn's strategy.

What is David Einhorn primarily known for in the investment world?

• Being an activist investor

• Being a short seller

• Being a philanthropist

• Being a venture capitalist

What is the main goal of Einhorn's strategy with GM?

• To reduce GM's workforce

• To merge GM with another company

• To offer investors options between earnings and dividends

• To increase GM's market share

What risk does GM want to avoid with Einhorn's proposed strategy?

• Being stuck with two stocks and reduced value

• Losing key executives

• Increased competition

• Higher production costs

How have other shareholders responded to Einhorn's strategy?

• They have sold their shares

• They have opposed it

• They have remained silent

• They have publicly supported it

What concern do rating agencies have about the dividend shares?

• They will increase GM's debt

• They will improve GM's credit rating

• They will lead to a merger

• They will decrease GM's stock price