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GENERAL MOTORS AUTHORIZES STOCK REDEMPTION

 NEW YORK, March 1 /PRNewswire/ -- The General Motors board of directors has authorized the redemption of all $5.00 Series and $3.75 Series GM preferred stock on May 1, 1993. The two preferred stocks were originally issued in 1930 and 1946, respectively. The cash cost of the redemption will be approximately $265 million with the preferred stock carrying a value of $234.4 million.
 In authorizing the redemption, the board determined that the action will provide additional financial flexibility to the corporation by eliminating antiquated covenants contained in the terms of the preferred stock. G.R. Wagoner, Jr., executive vice president and chief financial officer said, "of particular importance will be the enhanced ability by GM to reduce working capital and therefore better manage its balance sheet. In addition, GMAC will have additional receivables available which could be securitized on a very cost effective basis."
 Subject to stockholder notification, each share of $5.00 preferred stock will be redeemed at $120 per share plus accrued dividends of $0.430556, and each share of the $3.75 preferred stock will be redeemed at $100 per share plus accrued dividends of $0.322917. Previously announced preferred stock dividends for the first quarter of 1993 will still be paid on May 1 to holders of record on April 5. The additional dividends payable on the redemption date to holders who surrender their certificates for redemption will represent dividends accrued from April 1 through May 1. A Notice of Redemption will be mailed to holders of record of each series of the preferred stock as of the close of business March 17, 1993.
 "In view of GM's strong cash generation in the last quarter of 1992, the planned redemption will not place any constraint on GM's liquidity position," Mr. Wagoner added.
 Outstanding shares as of Feb. 28 totaled 1.530,194 for the $5.00 Series and 814,100 for the $3.75 Series.
 -0- 3/1/93
 /CONTACT: William B. Winters of General Motors Corporation, 212-418-6380/
 (GM)


CO: General Motors Corporation ST: New York, Michigan IN: AUT SU:

TS-AH -- NY095 -- 1588 03/01/93 16:31 EST
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Publication:PR Newswire
Date:Mar 1, 1993
Words:355
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