FOR RELEASE: August 18, 2000 CONTACT: Toni Simonetti PHONE: 212-418-6380 CONTACT: Steven J. Harris PHONE: 313-667-3437
DETROIT - General Motors [NYSE GM, GMH] today said that it received notice on August 16 from Carl Icahn that he intends to
acquire more than $15 million worth, but less than 15 percent, of GM $1-2/3 common stock subject to clearance under the Hart
Scott Rodino Anti-trust Improvements Act.
In order to ensure GM satisfies its disclosure obligations under federal securities laws, General Motors decided to make today's
announcement in order to provide this information to public stockholders as GM continues its previously announced $1.4 billion share
repurchase program. GM had commenced this repurchase of GM $1-2/3 common stock in order to partially offset the issuance of
stock to Fiat in connection with the strategic relationship recently established between the two companies.
GM believes that its common stock is undervalued at its current trading price. In light of the aggressive shareholder value initiatives
which the company has undertaken over the last several years, and its continued commitment to enhancing shareholder value, GM
stock is an attractive investment.
"Our track record is clear," said GM Chairman John F. Smith, Jr. "We have returned more than $34 billion to our shareholders since
1997, while simultaneously strengthening our financial position, funding profitable growth initiatives and establishing strategic global
relationships in our various business segments.
"During this period, GM has also achieved record earnings, underscoring our commitment to do more with less... improving earnings
while utilizing less shareholder capital," Smith said.
The company's recent restructuring of its economic interest in Hughes was a clear example of this commitment to shareholder value
enhancement. At that time, the company said it was stepping up the pace of its evaluation regarding what Hughes ownership structure
would be optimal for the two companies.
"We continue to look at ways to further unleash value from our ownership of Hughes while preserving our strong credit ratings," said
Smith.
