General Motors Corp is not planning to raise its stake in Isuzu Motors by participating in a stock buyback plan despite overtures from the Japanese truck maker.
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The Detroit News said Isuzu president Yoshinori Ida said on Thursday that the company is considering asking GM to invest more in the Japanese truck maker and understands that “GM is considering (the request).”.
But GM, which once controlled 49% of Isuzu and has enjoyed equity ties with the company since 1971, is not interested, spokesman Jerry Dubrowski told the newspaper.
“We don’t expect to participate in the acquisition of these preferred shares,” added Dubrowski. He reportedly said the decision would have no bearing on the joint or commercial ventures between the two companies, which are providing “outstanding value” to GM.
GM’s stake in Isuzu could shrink if other shareholders participated in the buyback, the Detroit News noted.
