David Einhorn, head of hedge fund firm Greenlight Capital, told CNBC on Tuesday that he was supportive of General Motors Chairman and CEO Mary Barra despite the company’s objection to Greenlight’s proposal to split the carmaker’s stock into two classes.
“Notwithstanding her objection to our idea, we are supportive of Mary Barra,” Einhorn told the cable television network.
He also said Greenlight had offered to go to credit rating agencies to confirm that there would not be a negative impact on GM’s credit rating as a result of Greenlight’s plan.
On Tuesday, Greenlight Capital urged General Motors (GM) to split its common stock into two classes, a proposal that was swiftly rejected by the carmaker. Greenlight Capital argues the move would help the carmaker improve its financial flexibility and boost the stock’s value.
The plan would lower the company’s cost of capital and unlock between $13 billion and $38 billion of shareholder value, Greenlight Capital said.
Greenlight Capital owned about 0.88% of General Motors’ shares as of Dec. 31, according to Reuters data.