General Motors is rejecting a proposal from investor David Einhorn to split its stock into two classes.
The company said Tuesday that the plan from Einhorn's Greenlight Capital hedge fund would eliminate the dividend on existing common stock and create a new dividend-focused security. The proposal would be submitted at GM's annual shareholders meeting this year.
But the company says that its board and management have analyzed the plan and decided against it. The company described the plan as unprecedented.
Greenlight Capital, based in New York, also has nominated four candidates for election to GM's board of directors.
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