GM Spins Off, Sells Stake in Hughes for $3.1 Billion

General Motors Corp. on Monday divested Hughes Electronics Corp. through a spinoff and sale of Hughes stock to News Corp. for $3.1 billion in cash, plus News Corp. preferred shares, giving Rupert Murdoch control of the biggest U.S. satellite TV service.

GM distributed one share of Hughes common stock for each share of GM Class H common stock, Detroit-based GM said in a statement. GM also sold its 19.8% stake in Hughes to Murdoch’s Sydney, Australia-based News Corp., which will acquire an additional 14.2% in Hughes from former GM Class H holders.

The moves give News Corp. a 34% stake in Hughes, the parent of DirecTV. GM, the world’s largest automaker, said this month that it expected to receive about $4.1 billion from the sale of Hughes and use the money to help offset its U.S. pension deficit.

GM H shares, a tracking stock, fell 1 cent to $15.97 on the New York Stock Exchange. It is expected to be delisted, with new shares of Hughes Electronics Corp. trading under the symbol “HS” today.

GM rose $2.05 to $52.41 and News Corp.’s shares rose 33 cents to $34.88, both on the NYSE.