BREAKING: York quits GM board, Kerkorian won't buy more GM stock
"Screw you guys, I'm going home." A phrase made famous by Cartman from South Park but one that we find so apt for news coming out of General Motors this afternoon. Royally irked over the ending of alliance talks with Renault/Nissan, billionaire investor Kirk Kerkorian has announced that he won't buy an additional 12 million shares of GM stock as he said he would, and that his advisor/muscle Jerry York has resigned his seat from the board of General Motors. The additional 12 million shares would've pumped Kerkorian's share of GM from 9.9 percent to around 12 percent. What will Kerkorian do now after his move to manhandle GM management has failed? Who knows, as this guy has been anything but predictable. Thanks to Chris D. for the tip!
[Source: CNN Money]
Reader Comments (Page 1 of 2)
Richard Warren 1:17PM (10/06/2006)
OHHHHHHHHHH, Poor babies! Didn't get what they wanted, now we go mope! Just goes to prove, only interested in one thing, fattening their own wallets.
As my first wife used to say, good riddance to bad rubbish!
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Paul 1:27PM (10/06/2006)
You guys probably had a million tips but you choose Chris instead of me! D'oh! (kidding!)
Cue Downward Spiral nnnnnnnnnnnnnnnnow!
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solipsism 1:08AM (10/08/2006)
No crap that is what they are interested. I guess you always invest your money where your heart tells you to for the 'good of the american people'?
GM had see this coming, and I don't see how this is a suprise to anyone.
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SobeSVT 1:30PM (10/06/2006)
Wow, only upon the news GM stck fell over $2. Around 6%. Those investors really like Kerkorian.
Wagoner SHOULD be so scared. Kerkorian wont simply accept defeat.
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hmmm 1:30PM (10/06/2006)
This probably has more to do with GM's recent board amendments to not let a single board members bully the rest of the corral, i kinda predicted something like this was gonna happen.
................................
GM gave us a big indication that the alliance wouldn't happen when the board of directors made amendments to the company's bylaws that will make it difficult for a single shareholder to rally other shareholders and influence management
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PuffyC 1:35PM (10/06/2006)
Special K is gonna bail. He knows this baby is going nowhere but down. Good day to short.
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Paul 1:36PM (10/06/2006)
I dont think its that they like Kerkorian - its that now their shares wont go up in value due to impending sale.
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Umm... 1:39PM (10/06/2006)
#1 - Tracinda is a HEDGE FUND. Of course that's all they care about.
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Richard Warren 3:15PM (10/06/2006)
"I just lucked into things. I used to think that if I made $50,000 I'd be the happiest guy in the world." Kirk Kerkorian
Here is his chance, take 50,000 give the rest to GM live long and be the happiest guy in the world!
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Jeff Crew 2:01PM (10/06/2006)
Now they will go after Ford - the weaker of the big 2.5
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Bill Maher is an Idiot 2:35PM (10/06/2006)
The last thing GM needs is Kerkorian is having more say in company affairs.
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Corey W. 2:38PM (10/06/2006)
HAHA!!
Bye, bye, don't let the door hit ya @ss on the way out..
He'll be back!! ;-)
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Bill Maher is an Idiot 2:36PM (10/06/2006)
Whoops! Error.
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GM WHO? 2:45PM (10/06/2006)
RUN FOR YOUR LIVES! THERE'S NO HOPE! THE SKY IS FALLING, no wait that was just a part falling off my wife's Malibu, silly me! BUT STILL, RUN AWAY! Kirk Kerkorian, your better off investing in trying to bring
back YUGO, they're at least a manufacturer worthy of saving!
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iQuack 3:22PM (10/06/2006)
Now Kerkorian is a "stuckholder" because GM shares will drop like stones if/when he tries to sell his stock.
Maybe with York gone, Kerkorian can kick up dust as more of an outside sharholder instead of an investor with board representation.
Given the mega-egos of both Wagoner and Ghosn, nobody should be surprised that the alliance talks fell apart in a hurry. Wagoner couldn't live with Ghosn running the show and the directors are backing Wagoner.
It was all a waste of time except perhaps for some delicious food and wine in Paris. MMMM, GOOD!
Best hope for GM would be more relief from UAW's stranglehold, and gas prices that fall enough to bring the SUV and truck buyers back. That's where GM has some new vehicles that seem to be competitive.
Maybe cars like the Saturn Aura will be as good as they look and if priced right, could bring GM back from the depths.
I wish them luck.
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Finished Law School 4:04PM (10/06/2006)
This is not good for GM considering there is no one in the GM organization outside of Kerkorian and York who have a clue.
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Jared 3:49PM (10/06/2006)
Not so fast. I wish Kerkorian was going to take hsi ball and go home. But he won't. As shown by his fruitless legal fight against Daimler-Chrysler, he doesn't give up, even when there's no hope of winning.
This is just a prelude to Kerkorian starting a proxy-fight. He couldn't do that while Jerry York was still on the board, due to the recent bylaw change voted in by the board.
Looks like some greenmail is coming.
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iQuack 3:55PM (10/06/2006)
Well, Jared, greenmail is a possibility.
It worked for Ross Perot!
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Jerry York 4:08PM (10/06/2006)
If all of you are smart, you'll short sell the stock ASAP. Once Tracinda begins to unload millions of shares, be prepared for 30%+ gains.
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UK-KID 4:28PM (10/06/2006)
Lithious
Don't you have an essay to prove how wrong most posters on this Topic are ?
Told you before, Watch this space.
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