Kerkorian not likely to be hands-off Ford investor
There's no indication that a leopard has ever changed its spots, so while Kirk Kerkorian and his Tracinda Corporation are making noises like they'll strive to be hands-off Ford shareholders, we'd expect some eventual attempts at steering the automaker from the board. As part of an offer to purchase more shares, Tracinda Corp. stated to the Securities and Exchange Commission that it has no intent to gobble up or influence Ford. The Las Vegas-based investment firm went on to say that it will continue to monitor the performance of its holding, and may suggest business moves to the automaker. Jerry York apparently took this to heart when he started mouthing off about what Ford should do with Volvo and Mercury, but that statement has since been rescinded as "shooting from the hip." It would not be a surprise, given the past attempts of Kerkorian and his toadies to direct the course of General Motors and Chrysler, that he once again start to make aggressive attempts at directing the moves of Ford. Tracinda is Ford's largest shareholder, though the hierarchy of Ford's board gives the family a lot of voting muscle. Kerkorian's most recent offer to Ford is for an additional 20 million shares at $8.50 per share, as well as the future prospect of a cash infusion to offer the turnaround plan further liquidity and thus, flexibility. Ford is mulling Kerkorian's bid, but the turnaround plan was put together without Tracinda's money, and can proceed without it, though more money on hand would allow Ford to accelerate its plans. Everyone's playing it cool, though meetings between Bill Ford Jr., Alan Mulally, and Kerkorian are ongoing, and the board of directors has promised a response to Kerkorian by May 22nd.
[Source: Detroit News, Photo: Detroit News]
Reader Comments (Page 1 of 1)
imoore 9:42AM (5/13/2008)
Kerkorian is not going to be satisfied until he completely destroys Ford. Chrysler and GM had the good sense to flip him off, so why can't Ford? Are they too chicken or too yellow to say back off? And if the unions are so powerful and influential, then why can't they tell Kerkorian to go away, unless they're in cahoots with him?
Reply
Ford Wannup 12:20PM (5/13/2008)
The Ford family's Class B stock includes the exclusive right to approve a merger, sale or liquidation of the company. It is next to impossible for outsiders to take over FoMoCo without at least a split in the family's public posture.
Short of that, Kerkorian's upside potential is for the shares to increase in value instead of buying, splitting, dicing, and selling the company in parts.
bakka 9:43AM (5/13/2008)
Just what Ford needs. A guy with no understanding of the auto industry who is too old to last long enough to see this through who wants to make a name for himself because he doesn't know what to do with the time he has left and probably is still upset he didn't get to do something big with GM or Chrysler.
Go away.
Reply
Joe Blow 9:49AM (5/13/2008)
With all that money, he should buy himself a clue....Go Away!
Reply
emre.aydinceren 10:03AM (5/13/2008)
Does really somebody need to tell them what to do Mercury?
Reply
C. McFeeny 10:09AM (5/13/2008)
I dunno why people are so down on Kerkorian.
1.)He actually had a good plan for GM with the Nissan/Renault partnership.
2.)If he'd of been able to take over Chrysler it might still be a viable company.
Seems like the only reason the Detroits don't want Kerkorian around is that his plans might make their leadership look bad. Which in GM's case, it is!
Reply
imoore 10:39AM (5/13/2008)
Kerkorian's leadership is what led MGM and United Artists from A-list film studios to D-list bottom feeders. That's enough reason not to do business with him.
Let him go meddle with the Chinese and see how long it will take before they tell him to get lost.
Rboyett 11:44AM (5/13/2008)
Kerkorian was absolutely right to oppose and even sue DCX over the Chrysler buyout. He correctly foresaw that this was not a merger of equals and he knew that Daimler was going to raid the huge pile of cash that Chrysler had amassed. His only real problem is that his personality really grates on people. He IS extremely intelligent but he acts as if he believes everyone else is stupid.
However York is kidding himself if he thinks he is going to be a real influence on Fords board of directors. I highly doubt he'll be able to put York on that board. The Ford family will bitch slap him at the earliest opportunity. But I do think his presence will light a badly needed fire under the Ford Family's ass.
wettlaufer 3:49PM (5/13/2008)
Ghosn did not have a good plan for GM. Ghosn had a good plan for Renault, which was to take most of the globalization benefits for his shareholders and leave about 20% for GM shareholders. GM's board didn't need to hear a plan from outsiders when management already put in place six years ago and has been executing it ever since.
Eric Biran 12:48PM (5/13/2008)
Kirkorian is a businessman to the exclusion of all else, and he is good at only one thing--making himself more money. As far as we've witnessed, he has only 2 moves when it comes to the automotive business:
1) Proposing (forcing) a merger to cause a rise in stock prices so he can flip his investment for even more money.
2) Proposing a sale of brands and non-core businesses to cause a short term rise in stock price so--you guessed it--he can flip his investment for even more money.
Reply
halogenrepublic 2:44PM (5/13/2008)
Kerkorian, the Al Davis of american car industry
Reply