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Non-Tech : GM - General Motors

GM 66.88

-2.0%

Nov 4 3:59 PM EST

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From: Arthur Tang	5/21/2009 6:32:28 PM
	of 543

GM's old trick was that the parts are worth more than the whole. In the 1980s, GM paid off the union with the stocks of their subsidiaries(EDS, Hughes direcTV, etc.). Now the new management did not apparently know GM's old trick. Pontiac can be spun off as a new subsidiary with stocks issued to the union(Pontiac is now made in Iran). Hummer can be sold off to any European bond holder. Opel sold to Fiat needs to have our government approval. So, before bankruptcy filing, GM should have hired an investment banker to come up with a viable solution? Direct negotiation by GM management and government bondholders at best can have a period of zero interest payment(extended grace period). What if GM stock value rises? It will be easier to retire debt?

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