Reuters first on GM’s looming bankruptcy

GM shares surged as much as 30 percent on May 21 after Reuters was first in reporting that GM and its union reached a deal on cutting labor costs and changing the terms of $20 billion in debt for retiree health care. Reuters headlines were 8 minutes ahead of Dow Jones and a minute ahead of Bloomberg. Reuters already had reported exclusively on May 19 that GM’s plans for its potential bankruptcy included a quick sale to the government, a proposal for labor and old unsecured creditors to get stock in the new company. Reuters also was alone in reporting that Fritz Henderson would be expected to be CEO of the New GM when it emerges from bankruptcy and that GM’s plan includes taking back part of Delphi. CNBC’s Larry Kudlow led his program summarizing the Reuters reporting two days in a row. The Reuters story was the top link on The Drudge Report, and was the most popular story on Reuters.com for two days.