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My son was left some GM stock. I was going to sell it, but now that they've announced this split, I'm confused. I haven't been able to find out what it really means. Can anyone shed some light?

Thanks.
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Morenews,

I haven't heard anything about a GM stock split but a split gives you (usually in a 2 for 1) twice as many shares as you had before the split and the stock price is divided in half

So if you had 100 at $50 after the split you would have 200 at $25 a share.

Usually I look at a split as a good thing but it isn't always the best move for a company.

In GM's case I wonder if now is the time for this to happen.
When is this supposed to happen?

Thanks and I hope this helped
Rod

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My guess is that you are referring to the impending spinoff of the Delphi operations.

This is not a split per se. When it occurs you will be given a certain number of shares of Delphi stock for each share of GM you own. The overall value of both stocks should approximate the value of your GM stock before the spinoff.

I believe the general consensus is that this spinoff should be good for both GM and Delphi. We shall see...

Foolish regards,
HowdyFool
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Does anyone have any initial feelings about where the true value of spun-off Delphi shares will lie, and whether that site will be able to overcome its inefficiency and labor relations problems once GM is no longer directly in the UAW's sights there?

==> david
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I don't know how well this whole spin-off thing is going to go. Here's a quote from our local paper, The Ann Arbor News, from Weds 8/26. The reporter is Rick Haglund.

"One of those announcements - that GM was spinning off its giant Delphi Automotive Systems parts unit - infuriated Yokich.

The union president told reporters at a media briefing Tuesday that he didn't know about the plan until after GM's board of directors approved it.

When Ford and Chrysler get ready to sell operations and close plants involving UAW jobs, they discuss such moves with the union before the decisions are made, according to Yokich.

'That's exactly what's wrong with GM,' he said.

The Delphi spinoff is going to be a major topic in next year's national contract negotiations at GM, said Yokich, who threatened Tuesday to strike the automaker if it doesn't back down on plans to make Delphi and independant company."

Soooooo, I don't know who'll "win" this one, or if maybe Yokich is just blowing steam. But it looks like GM still has plenty of labor problems coming fown the pike.

Laura
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Thanks, as usual, for your on-the-scene report, Laura. It does look like there is still a long row to hoe yet. I had seen somewhere where Yokich was upset because GM didn't consult him when it made its business decision. I cannot see any reason why they should consult the UAW on executive decisions, but perhaps if I was more sympathetic to the union position I would.

Using Tom Gardner's suggestion some time ago, maybe GM should pull an end-around on Yokich and include stock options to the Delphi employees in the spinoff, in addition to those for the GM shareholders.

Or maybe I should start getting upset that the managing directors at my company haven't been strolling by my cubicle to run their ideas by me before implementing them. =8^)

==> david
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David:

Loved your reply.

Another thought would be: How about GM HIRING Yokich! Now that would be a multi-disciplined experiment of fabulous interest to a great many people.

The more I think about it the more I like it!

Gus
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<<"One of those announcements - that GM was spinning off its giant Delphi Automotive Systems parts unit - infuriated Yokich.

The union president told reporters at a media briefing Tuesday that he didn't know about the plan until after GM's board of directors approved it.>>

Yokich isn't going to let facts stand in the way of a good story. Shortly after the strike ended and GM management announced the plan for the spin off, Yokich was on TV saying that he was shocked and had no prior warning.

The president of the Delphi East local was on television saying that the workers knew that the spin off was planned, and he seemed to accept it.

Looking at the facts, in the agreement to end the strike GM agreed not to sell the plant betore the end of 1999- suggesting to anyone that a sale therafter was likely.

A couple of years ago, GM took down the GM signs at the plants and assigned them the "Delphi" essentially a new division. This was obviously a pre-sale move.

GM salaried employees working at the Delphi facilities have been unable to transfer to other GM jobs for the past couple of years, pending the planned spin-off or sale.

My question is.... Can GM get rid of these parts plants or will it end up bailing them out?

Perrigrine bought GM parts plants,, lost money and announced the planned closing of the plants. GM needs the parts made by these plants and has announced that it will hire UAW workers from those plants to make these same parts......as part of GM.

Maybe GM can become more efficient by shedding parts plants but this really remains to be seen
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