DETROIT — General Motors announced a $5 billion stock buyback as part of a plan to return more cash to investors. In return, an activist shareholder decided to drop a potentially divisive bid for a seat on the company’s board.
The moves, announced Monday, are part of a deal with Harry Wilson, a former member of the government task force that restructured GM coming out of its 2009 bankruptcy.
Wilson, who represents four hedge funds which own about 2 percent of the company, had previously accused GM of hoarding cash to the detriment of shareholders and had sought an $8 billion buyback and a board seat.
But on Monday, he said he was impressed at how quickly GM’s management responded.
“We basically said ‘Thank you,’ ” Wilson said.
GM had $25.2 billion in cash at the end of last year, part of what it called a “fortress balance sheet” designed to withstand another financial crisis.
