Suzuki (Tokyo Stock Exchange ticker: 7269) shares actually gained 3% yesterday when it used cash from its own reserves to buyback 17% of its shares owned by General Motors (GM). GM still retains 3% ownership. Investors were relieved the 90+ million shares didn't drag the share price down in the open market as it could have taken a while for the market to absorb them. Analysts and investors alike feel more confident about Suzuki after months of speculation whether GM would sell and what would happen to their 25-year relationship. Note that the two autos still plan to collaborate but without GM putting up the big funding it used to.
Despite a declining overall stock market in Japan as the nation embarks on a new monetary policy effectively exiting deflation, Suzuki shares have done well and have been trading at an all-time high. And, something I think nobody ever imagined would happen -- Suzuki's market cap exceeding GM's -- became a reality as the mini-car manufacturer now has a 1.4 trillion yen market cap (US$11.8b) compared to GM's US$11.47b.
I initially came across the news of the market cap comparison on page 2 of this IHT article.
GM 1-yr chart:
Suzuki 1-yr chart: