The automaker warns that common shareholders will be wiped out when it emerges from bankruptcy.
Posted by Charley Blaine on Wednesday, July 1, 2009 8:51 PM
You don't see this very often, but General Motors (GMGMQ) issued one of the most ironic press releases in memory today.
It told investors to steer clear of its stock.
Almost always in a bankruptcy, the common shareholders lose their stakes because all other creditors get paid off first.
GM filed for Chapter 11 bankruptcy protection on June 1 in order to rebuild the company to better compete in a global market.
The automaker noted today that its shares had been trading above $1 since June 8 with pretty heavy volumes. It peaked on June 10 at $1.55.
The company repeated today its "strong belief that there will be no value for the common stockholders in the bankruptcy liquidation process, even under the most optimistic of scenarios."
Investors apparently heard the warning. The stock fell 16.7% to 91 cents.
GM to investors: Don't buy our stock- Market Dispatches - MSN Money
Harold