GM Shares Reverse Declines After UAW Claim of “Massive” Gov’t Fnancing
GM Shares Reverse Declines After UAW Claim of "Massive" Gov’t Fnancing
Shares of General Motors (
NYSE:GM), which hit a low of $1.12 this morning (down 22% vs. Friday’s close), have reversed their decline and are now trading nearly 2.8% higher to $1.47 after the Wall Street Journal reported that the United Auto Workers (UAW) union said that the U.S. Government will provide "massive" financing assistance to help GM restructure without liquidation. The reports came shortly after the WSJ reported that GM had made an offer to the UAW healthcare trust (VEBA) for up to 17.5% of the company in addition to notes, preferred tock and warrants. The WSJ also is reporting that the UAW will have the right to name one member to GM’s Board of Directors.