GM arb

Hedge fund guy looks at the ideas behind an investment in GM. Sounds rather similar to Rover (though without the financial arm).

Mahalanobis: "Kerkorian sees the arb. Buy managing interest in GM. Sell GMAC. Spit out a special dividend with GM's cash, which would otherwise only be subsidizing a losing operation. GM would then go bankrupt rather quickly. GMAC plus cash dividend should exceed the current value of GM be a bit. It may seem cruel, but it is only accelerating the inevitable, and it is never in society's best interest to subsidize a money-losing operation with no growth prospects, as this merely means that you are encouraging value destruction. "