Report: Buffett, Soros boost stakes in GM

Crain News Service staff and wire reports

DETROIT (Feb. 18, 2015) — Warren Buffett and George Soros, the billionaires making headlines with moves to invest in auto retailing, have boosted their stakes in General Motors Co., the Wall Street Journal reported.

According to a federal filing on Feb. 17, Mr. Buffett's Berkshire Hathaway, which will buy the Van Tuyl Group, increased its GM stake by 1 million shares to 41 million during the fourth quarter, the Journal reported. Soros Fund Management, which is said to be preparing to invest up to $1 billion to acquire auto dealerships, raised its stake by 728,938 shares during the fourth quarter to 4.9 million.

News of the GM investments comes as the auto maker faces growing pressure to boost shareholder value and return more of its cash hoard to investors.

Harry Wilson, a member of President Barack Obama's auto team that restructured GM and Chrysler, said last week he will nominate himself for a seat on GM's board and propose an $8 billion stock buyback.

“The company's common stock is substantially undervalued, the company is substantially overcapitalized and this repurchase of undervalued shares will create substantial shareholder value,” Mr. Wilson said in his letter to GM.

The auto maker said this month that it had $25.2 billion in cash and current marketable securities and $12 billion in available credit for its automotive business at the end of last year. GM also said last week it will increase its dividend 20 percent to 36 cents a share per quarter.

Last year, GM vehicle sales rose 5.3 percent to 2,935,008 vehicles.

Bloomberg News contributed to this report, which appeared on the website of Automotive News, a Detroit-based sister publication of Tire Business.