March 28, 2017 / 2:52 PM / 10 months ago

Einhorn's Greenlight Capital urges GM to create two share classes

March 28 (Reuters) - David Einhorn’s hedge fund Greenlight Capital Inc on Tuesday proposed a plan that would split General Motors Co’s common stock into two classes, to help the automaker improve its financial flexibility and boost the stock’s value.

The company’s shares were up 2.4 percent at $35.56 in morning trading.

The plan would lower the company’s cost of capital and unlock between $13 billion and $38 billion of shareholder value, Greenlight Capital said on Tuesday.

Greenlight Capital owned about 0.88 percent of General Motors’ shares as of Dec. 31, according to Reuters data.

Reporting by Arunima Banerjee in Bengaluru; Editing by Sriraj Kalluvila

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