5.8% of GM shares were acquired by Capital Research Global Investors

Article by Christian A., on February 19, 2012

More than 5% of General Motors Co.’s shares were acquired by Capital Research Global Investors, one of the largest investment management companies in the world, the automaker announced last Tuesday. GM revealed in a filing submitted to the Securities and Exchange Commission that the Los Angeles-based company currently owns over 92 million shares or 5.8% of the company.

The SEC requires that when the ownership of an individual or organization exceeds 5%, the corporation has to inform the agency. Capital Research Global Investors is part of the Capital Group Companies, one of the top mutual fund managers.

According to analysts, this decision to increase holdings in GM implies a vote of confidence in GM. David Kudla, CEO of Mainstay Capital Management LLC, said that the company is now “lean and mean,” adding that the balance sheet is “very different” from what it was about three or four years before.

Kudla said that its stock is lower by 45% from last year and since it “certainly” didn’t lose its enterprise value, it makes these acquisitions likely to come through. He explained that GM will only become stronger despite worries about the difficulties faced by its European operations. He said, ”Europe is struggling, so everybody who does business there is struggling.”

However, Chevrolet’s market share in the U.S. had grown last year and the current market is continuing to recover. He said that there’s a deep recession and that recovery is slow but there’s a lot of pent-up demand. Kudla anticipates that GM will post a profit of around $8 billion for 2011 when it reveals its earnings on Thursday.

GM has yet to comment about the stock news. Capital Group also hasn’t said anything but then it does have a policy of not talking about its investments. GM became bankrupt in 2009 and the U.S. government still owns a part of it. Specifically, about 26% of GM is owned by the U.S. Treasury Department.

Topics: gm, shares

If you liked the article, share on:

Pin It

Comments

Recommended

McLaren is said to be designing the next generation of Sports Series, which could include a V6 hybrid among its powertrain options. It was earlier reported that the British automaker...
by - March 24, 2017
To the proud owners and owner-to-be of the Porsche 991 Carrera GTS, there's good news for you all. German automobile manufacturer Porsche recently confirmed to the public that the Porsche...
by - March 23, 2017
McLaren diehards, this is the moment that you're all waiting for. The British automaker recently publicized the teaser outline of its new automobile that will hit the streets soon, dubbed...
by - March 23, 2017
PSA seems very confident about conquering the world. The purchase of Opel/Vauxhall for €2.2 billion ($2.3B) from General Motors makes PSA the second largest car company, just behind the Volkswagen...
by - March 23, 2017
Reporting for duty. It’s been a year since the Victoria Police was loaned a new Mercedes-AMG GLE 63 S Coupe. In those 12 months, the coupe served as the law...
by - March 23, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries