NEW YORK (Thomson Financial) - Shares of General Motors Corp. fell Monday,
enough to make it the biggest percentage decline among Dow industrials
components, amid investor concerns over labor issues and the relationship with
troubled real estate finance company Residential Capital.
GM shares slid 2.9% to $22.53, and was down as much as 4.3% earlier in the
session.
The United Auto Works union went on strike at GM's fairfax facility, which
makes the Malibu sedan and employees about 1,800 UAW members, Reuters reported.
Separately, Moody's Investors Service downgraded the senior debt of
Residential Capital LLC to Ca from Caa1, citing the planned bond exchange.
ResCap is a unit of GMAC LLC, which is 45% owned by GM.
ResCap said Monday that it commenced private exchange offers and cash tender
offers for U.S. dollar equivalent of $12.8 billion outstanding notes.
Tomi Kilgore
tk1
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