Bruce Nunnally Posted November 17, 2008 Report Share Posted November 17, 2008 TOKYO -- Highlighting its urgent need for operating cash, General Motors Corp. said Monday it sold its remaining 3% stake in Japan's Suzuki Motor Corp. on the open Tokyo stock market for about $230 million. GM said the move was "based on a mutual agreement," while the Japanese compact-car maker said it was mindful of GM's need to secure funds as it reels from a slump in auto sales in its major markets and high operating costs. The U.S. auto giant said it sold the shares for a price that matches Suzuki's closing share price in Tokyo Monday of ¥1,363 ($14.03) a share. That is nearly 5% below the stock's 25-day moving average, and less than half its high for the year. GM and Suzuki work together on developing hybrid and fuel-cell technologies. They also jointly own a Canadian manufacturing operation and share purchasing and cooperation on entering emerging markets. "We highly value our strategic relationship with Suzuki," GM Chief Executive Rick Wagoner said in a statement." This action will have no impact on our existing bilateral business relationships." [more on WSJ] Bruce 2023 Cadillac CT4-V Blackwing Follow me on: Twitter Instagram Youtube Link to comment Share on other sites More sharing options...
WarrenJ Posted November 17, 2008 Report Share Posted November 17, 2008 Suzuki likely made a smart move in buying back its shares at a distressed price. There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved. - Ludwig von Mises Link to comment Share on other sites More sharing options...
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