General Motors Corp.’s largest, and arguably most troublesome shareholder, Kirk Kerkorian, has decided to sell a large piece of his holdings in GM stock.
In a filing with the U.S. Securities Exchange Commission, Tracinda, Kerkorian's holding company, reported the
Several hedge funds have recently have acquired small stakes in GM. The deal will leave Kerkorian with about 7.4 percent of GM’s shares.
In a separate filing, Kerkorian disclosed that he will use the proceeds to offer $55 per share or $825 million for up to 15 million shares of MGM Mirage Inc. The twin filing suggested that Kerkorian is redeploying assets away from GM, lessening the chances that he will wage an all-out proxy fight with GM’s board of directors.
Kerkorian’s about-face comes almost exactly one year after GM announced plans to close 12 plants and eliminate 30,000 manufacturing jobs.
Kerkorian originally assembled his stake in GM during the winter and spring of 2005 at the urging of his automotive advisor Jerry York. Last month, York, who by then was a GM director, resigned from the GM board after it rejected a proposed partnership with Renault/Nissan. In his resignation letter,
Spy Shots: 2008 Chevrolet “Blue Devil” Corvette by TCC Team (11/20/2006)
A reader catches the once and future 600-hp 'Vette.
GM Looks Forward in China by Joseph Szczesny (11/20/2006)
There's no telling how fast
Ghosn Still Looking for a Partner by TCC Team (11/20/2006)
Nissan, Renault CEO still believes in global reach.