Motley Fool – Will a quick-profit scheme by a group of hedge funds end up costing General Motors $8 billion? It could end up costing more than that. The hedge funds’ effort to force GM to spend $8 billion of its $25.2 billion cash reserve on a share buyback could hurt GM’s hard-won investment-grade credit rating, according to a Wall Street Journal report.
That could drive GM’s financing costs up by hundreds of millions of dollars a year, making this an even more expensive boondoggle than it appears.
