DETROIT, Feb 28 (Reuters) - General Motors Corp. said on Friday it will contribute 150 million of its Hughes Electronics Corp. shares to its employee benefit plans, which have become underfunded partly due to the drop in the stock markets.
The contribution, which will cut GM's operating expenses for its benefit plans in 2003, will reduce GM's economic interest in its wholly-owned Hughes unit to about 20 percent from 30.7 percent, GM said.
GM, the world's largest automaker, also said it filed an amendment to its universal shelf offering to increase the amount of securities covered to $10 billion from $5 billion. The filing will also broaden the the types of securities to include Hughes common stock and other related securities.
GM said the change in the shelf offering gives the automaker added financial flexibility with Hughes. The company said it is evaluating a number of options that could reduce or eliminate its economic stake in Hughes, including transactions with investors or public offerings.