Board-Ansicht
Mix-Ansicht- GM Denies Accounting Problems, Seeks Source of Rumor - Hirscherl, 28.06.2002, 00:30
GM Denies Accounting Problems, Seeks Source of Rumor
NEW YORK -- Rumors that General Motors Corp. (GM) was planning to hold a
conference call to discuss accounting issues at its financing unit, General Motors Acceptance Corp., were denied by GM spokeswoman Toni Simonetti Thursday.
The rumors caused imbalances in the trading of both the company's stock and
exchange-traded bonds, leading to a brief halt in the trading of its securities.
Ms. Simonetti told Dow Jones Newswires that the rumor was"troubling" and said
the company was seeking to track down the source of it.
GM Spokesman Jerry Dubrowski said the company had prepared the following
formal statement in reaction to Thursday morning's rumor:
"GM is not subject to an accounting investigation and strongly believes that its
accounting is appropriate. GM believes that rumors of irregularities in its
accounting are unfounded."
Mr. Dubrowski said the company hasn't been able to find the source of the rumor.
The rumor comes two days after WorldCom Inc. (WCOME) disclosed it had
inaccurately accounted for $3.8 billion in expenses, causing its earnings to be
inflated for the last five quarters.
In afternoon trading on the New York Stock Exchange, shares of GM fell 71 cents,
or 1.3%, to $52.37. Earlier, the stock was as low as $50 on the rumors.
Yield margins on GM/GMAC bonds were quoted as much as 0.20 percentage wider
on the rumors but rebounded from most of those losses after the company denied
the market chatter. Yield margins on the bonds recently were quoted 0.05
percentage point wider.
Copyright (c) 2002 Dow Jones & Company, Inc.
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