TOPICS IN WALL STREET.
|Topics: General Motors, Chevrolet, Springfield Body
The New York Times
April 7, 1916
Excerpts from a multi-topic article
A Fortunate Exchange.
When W. C. Durant, head of the Chevrolet and a former head of the General Motors Company, decided to acquire control of the latter company by increasing the amount of Chevrolet stock and offering the new shares in exchange for General Motors many General Motors holders suspected a scheme to get them into a new issue of problematical value. The offer was never made generally, but it was understood that any owners of General Motors who desired to accept the offer could make arrangements to do so. The original offer was five shares of the smaller company's stock for each share of General Motors. At that time these figures represented parity between the two issues. After a few weeks, to take into account the advance in the price of Chevrolet the ratio was changed to four for one, and shortly afterward the offer was withdrawn. Those who accepted the original offer have reason to congratulate themselves on the basis of present prices. General Motors closed last night at 460, off 25 points; Chevrolet at 196½, up 9. Five shares of Chevrolet are accordingly worth $522 more than one share of General Motors.
Delay in Listing.
An application to take Chevrolet stock from the curb and list it on the big board has been pending before the Stock Exchange authorities for some weeks, but has not received attention yet, owing to the congestion of work caused by the large number of applications. When the matter comes up for action the question will be raised as to the ownership of Chevrolet shares. The rules of the Exchange forbid listing an issue which is not widely distributed, and if Mr. Durant owns a majority of the stock it may prove a bar to listing at this time.
An Automobile Accessory Stock.
In the wake of the automobile stock now comes the stock of a concern which makes automobile parts. That is a logical procession. Trading was inaugurated yesterday on the Curb in the common and preferred stock of the Springfield Body Corporation, a new concern which makes patented bodies and tops for popular-priced automobiles. There is $750,000 of the 8 per cent. preferred stock and $1,500,000 common stock outstanding. The preferred was put out at par, and was reported sold yesterday at 103. The common, which was put out at 50, and a large part of which is held by company interests, sold up to 55.
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