Filed under: GM, Earnings/Financials
BREAKING: Kirkorian sells all GM stock
Gajillionaire Kirk Kerkorian and his investment firm Tracinda Corp. washed their hands of General Motors yeseterday after selling off all of their remaining shares in the company. Their 19-month relationship with the automaker is marked by Kerkorian's failed attempt to get General Motors to form an alliance with Nissan/Renault, a move that he believed would hasten the automaker's turnaround and perhaps return a healthy profit on his investment.
The sell off happened in two stages on Thursday. Yesterday morning it was reported that Tracinda sold 14 million shares of GM stock, reducing its stake in GM to 4.95%. This news came just a week after Tracinda announced it had reduced its stake from 9.9% to 7.4%.
Late yesterday evening, however, the Wall Street Journal reported online that Tracinda unloaded its remaining 28 million shares in GM. Unfortunately, no one has been able to confirm if the last sell off is actually true and Tracinda Corp. has declined to comment. We'll have to wait until the sun rises on Wall Street to see how the news of Kerkorian's pull out affects the market, as well.
We'll keep you updated as soon as a confirmation one way or the other is released.
[Source: Automotive News]
Reader Comments (Page 1 of 2)
$0.02 12:40AM (12/01/2006)
Like it or not, GM doesn't need a raider to turn them around and they definitely don't need an alliance with a Europeon (French) company who will run them into the ground like Daimler did to Chrysler.
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Josh E. Oliver 12:56AM (12/01/2006)
Kirkorian was not legally obligated to announce the second (third?) sell off of the remaining stocks. During his sell off earlier in the day, that put him just below the SEC requirements to file all sales with them.
Wall Street analysts reported that shortly after Kirk had filed with the SEC that he was selling 14 million shares, they also noticed about 28 million GM shares hit the market, which would be all of Captain Kirks.
While I supported his initial move on GM, I saw it as a vote of confidence. However, as we began to read more and more news stories about Jerry York and Kirks pressuring on GM's board, it became apparent what was going on.
Wagoner won this battle, much like how he has with the UAW and suppliers to implement GM's turnaround. Hopefully the positive news can keep coming.
This however begs the ultimate question. Is the "Glass House" up next for Captain Kirk?
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Car videos & Motorcycle videos 1:10AM (12/01/2006)
Interesting what will happen to this stock at opening a few hours from now.
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Chris 1:36AM (12/01/2006)
Ford is very different than GM in that the Ford family holds majority of the voting shares of stock with many of the remaining voting shares are held by family friends and high Ford ranking execs. Cap'n Kirk could buy as many shares as he wants but he would'nt have as much clout as an investor like he did at GM. This arrangment has been both good and bad for Ford but with their current state its good because it prevents hostile take overs and people like Kerkorkian.
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Jeff Crew 2:28AM (12/01/2006)
That is one big monkey of GM's back. I hope it is true and KK is gone for good. Good job to Rick, Bob, and all the top managers for boxing them out of their insane ideas. I think KK will go after DCX again now that rumours are spreading that Chrysler should be spun off of the Daimler side of the company. He could buy it himself if he wanted to. That is where I see him laying down his next pressure move. Ford is still a family owned business which makes it less attractive for him to sway his gothic influence. Crazy old man with too much time and money - Kirk.
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John 2:38AM (12/01/2006)
Sore loser.
He's just embarassed by his loss in the board room, that's why he's selling. He would have made money if he kept the stock.
Just look at the Aura, Malibu, Outlook, Acadia, Silverado, Vue, CTS, and you know GM is on the rise.
Look at GM's fuel economy, many of them are the best or second best against all competitors.
The current Malibu has the best reliability in class, beating the Camry. The new Malibu should continue that trend.
And to back that up, domestic pricing undercuts Japanese prices.
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haha #6 2:53AM (12/01/2006)
malibu competing with camry??? haha.. u gotta be kidding me.. ur comparing number 1 selling car to what.. number 123451234214...
funny how all from all those cars u mentioned that are on the "rise", an average joe will be lucky to recognize half of em... wake up to reality
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CorporateShill 3:00AM (12/01/2006)
Just like how the average joe can distinguish a Camry from a Mazda6 from a Sonata from one of those new George Foreman grills.
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GhostDoggy 5:41AM (12/01/2006)
So, how does this put their stock status? Buy, hold, sell, burn, wipe-butt & flush? Need to know so I can tell my friends what to do with it.
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Father Time 6:12AM (12/01/2006)
I guess that mad monkey up Old Kirk's ass finally got the best of him. Mr Kirk, people as old and ugly as your are really, should be working on an attitude fix, not a corporate fix.
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Icon149 8:06AM (12/01/2006)
#9
My opinion, all these shares of GM will drop the stock price significantly, this is a perfect buying oportunity. the only thing that has changed is GM is free of a complete loon. No good could have come from a merger with Renault and Nissan, economies of scale start working against you when you are that big. and it would probably just give the Frenchies in roads to the US market (read shared platforms and ease of Federalization) More competition is not what GM needs right now. I'd buy in the next day or two at a seriously discounted price. it will make a quick rebound and then sell and take a profit... or hold on long term and bet on the turn around!
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Darien Allen 8:18AM (12/01/2006)
Daimler ran Chrysler in to the ground?!?!?!
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Rich 8:19AM (12/01/2006)
It looks like all of KK's stock is already sold and was market priced yesterday, offset against the news of the sale of GMAC. The average daily GM stock transaction is in the 8 to 10 million shares range. Yesterday it was over 85 million shares. I think that what you'll see today will be an emotional and/or psychological response.
Wish I could predict which way it will go - could make a bundle!
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Richard Warren 8:25AM (12/01/2006)
#9 & 11,
This morning will tell, took a dive yesterday but pretty much bounced back. If it drops a lot, I'd look at it as a buy, otherwise a hold. I bought at 18 and long change, sold off at 34 and short change. If it dropped in the next few days to the mid 20's I'd buy back in. It's about a 35 stock.
Good riddance to his leaving.
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Frank 8:50AM (12/01/2006)
12. Daimler ran Chrysler in to the ground?!?!?!
Posted at 8:11AM on Dec 1st 2006 by Darien Allen
Yes. First they got rid of the "old Guard" executives including Tom Gayle, one of the best design chiefs in the business.
Then instead of coming out with their own home grown developed products like the 300N they made them take old platform pieces (E-class) and old whole platforms (SLK) to sell to the unsuspecting consumers. The 300c sold strongly for a while based on it's rear drive architecture and unique styling but that doesn't last forever.
Chrylser also built the concept ME412 that kicked the SLR's ass from here to Stugart and back (for less development money) and Daimler wouldn't let them build it.
Do you think that old Chylser management would have diluted the Jeep brand? And finally - Joe (if we build it they will buy) Eberhardt - a Daimler executive is responsible for the unsold vehicles sitting in the "sales bank"
A couple of years ago I was at the Concours d’Elegance on Ameila Island FL and DCX had a tent with a 300C inside and a Hemi engine display. Outside of the tent in broad daylight they had the 300N concept convertible. This was the Tom Gayle et. al. creation that was going to replace the 300M (pre “merger of equals”).
Just beautiful to look at.
And rear wheel drive.
And Hemi powered.
And they didn’t make it.
When you look at it next to the current 300C or even SRT it makes the latter seem like a baroque monstrosity.
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Phil L. 8:52AM (12/01/2006)
Probably the more relevant topic: Kerkorian isn't going to sell merely to get rid of GM stock - he's got a plan for something else he wants to do with the money. Given his history, it's safe he wants to buy into some company in a big way.
So... How many boardrooms are out there dreading the news of large block stock buys in their company?
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jeffinToronto 9:18AM (12/01/2006)
I'm not sure if I would call this a case of being a sore loser (#6) or if it is more someone who finds it impossible to deal with a bloated yet smug company that has been bleeding red ink for years. How a company this poorly run can think that they have all the answers and don't need anyone else's help is beyond me.
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Mike 9:42AM (12/01/2006)
Ahhhh, after reading this thread, I finally understand what is meant by, "Ignorance is bliss"!
Like GM's about to turn it around! Yeah right!
GM needs as much help as it can get!
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DarkKnight67 10:05AM (12/01/2006)
Good riddance to bad rubbish. The guy is little more than a playground bully who cries and pouts if he doesn't get his way.
Gee, I'd like to have billions of dollars to mess up people's investments and laugh profusely as I buy and sell my stock while people's retirement income fluctuates. No great loss.
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Timmay 10:08AM (12/01/2006)
GM stock is now a 28 dollar stock considering ford stock is about 37% from its high GM stock should be at 25 dollars but give them 20% for better product. I t will be 25 dollars or lower by next year. They cannot make money on cars, and with intro of hybrids will erode profits further.
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