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"It is clear that the rating agencies relied upon – and were misled by – the company," Greenlight Capital says...
It is clear that the rating agencies relied upon — and were misled by — the company. We believe that implementing our plan would, in fact, improve GM's access to capital and enhance the company's financial flexibility.
The rating agencies' public statements issued regarding the Greenlight proposal clearly indicate that they understood the idea in all its facets, and would represent a credit negative if implemented.
I would compare it to an ice cream stand that just serves chocolate and vanilla swirl ice cream.
As Greenlight has already acknowledged, the proposed dual-class common stock structure would have no positive effect on GM's underlying business or cash flows, and therefore would not create additional intrinsic value.