GM Shares Hit Low Of $1/Share In Early Trade
14 5월 2009 - 12:12AM
Dow Jones News
General Motors Corp.'s (GM) shares, trading above $40 less than
two years ago, fell to $1 in early trading Wednesday amid concerns
it will file for bankruptcy.
GM's fall came as the broader market sank on worse-than-expected
retail sales data for April.
But the auto maker's share price has fallen sharply as it faces
a June 1 deadline by the Obama administration to substantially
restructure its balance sheet or file for bankruptcy
protection.
Even if GM avoids bankruptcy, existing shareholders would be all
but wiped out. The company's out-of-court restructuring strategy
hinges on a plan that would use new share offerings to pay off
creditors.
On Monday, six of GM's top executives disclosed they sold more
than $300,000 in company stock.
GM shares recently rebounded to $1.14. The stock is down about
95% over the past year and has dropped 65% since the start of the
year.
Shares of Ford Motor Co. (F) also fell this week following the
company's announcement Monday it will offer 300 million shares to
help fund retiree health-care benefits in a move that would dilute
shares outstanding by about 13%. Shares were trading recently at
$4.78, down nearly 30% from Friday when shares hit a nine-month
high.
-By Sharon Terlep, Dow Jones Newswires; 248-204-5532;
sharon.terlep@dowjones.com.