In late April, billionaire investor Kirk Kerkorian made public his intention to have Tracindo Corp., his investment company, buy up an additional 20 million shares of Ford stock to up his ownership of the Blue Oval from 4.7% to 5.6%. He offered $8.50/share, which at the time was a small premium over Ford's share price of $7.50 and today is a big premium over its current price of $6.16/share. He set a deadline for Ford shareholders to respond to his offer by yesterday at 5 PM, and boy did they. Kirkorian received offers to buy 1 billion shares of Ford, 980,000,000 more than he intends to buy. As such, Tracinda Corp. will easily acquire the additional shares it needs to reach 5.6% ownership of Ford at a price of around $170 million, but hasn't stated that it will buy up anymore of the Dearborn-based automaker. Ford's board of directors has already stated on record that it is neutral and has no opinion about Kirkorian's increase in shares. We wonder if their mood will change when he asks to sit down at the table with them at talk business.[Source: Automotive News, sub. req'd]
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Reader Comments (Page 1 of 1)
tankd0g @ Jun 10th 2008 4:10PM
Because it's got nowhere to go but up?
Joe Blow @ Jun 10th 2008 4:25PM
Ford should just give him Mercury, and tell him to go away...
Duncan @ Jun 10th 2008 4:27PM
Honestly, up until he crawled back out of his sarcophagus last month, I was not aware that Vincent Pr...uh, Kirk Kerkorian was still alive.
Then again, you could almost say the same for Ford...
Jo. A. Borras @ Jun 10th 2008 4:32PM
Ouch!!!
Raven @ Jun 10th 2008 4:36PM
LOL
geo.stewart @ Jun 10th 2008 5:04PM
BAM
Quan @ Jun 10th 2008 5:14PM
hahaha, cold as ice.
jamie @ Jun 10th 2008 5:10PM
Hey Carlos,
Have I got a deal for you....
pio!pio! @ Jun 10th 2008 5:22PM
lets see 20 million shares to up his ownership from 4.7 to 5.6 (up 0.9%)
instead he gets offered 1 billion (50 times more than 20 million)
if he bought them all that would increase ownership to 4.7 + (0.9 * 50) = 49.7%
unless they issues more shares..HALF the company!
Preston @ Jun 10th 2008 5:32PM
= about half Ford share holders want to be jumping off the boat for that nice floating door instead of chilling with the band and the capitan
Tagg @ Jun 10th 2008 10:44PM
He could buy them all and still not have the voting shares required to control the company. Could have major influence? Of course but not control like he had at GM and Chrysler.
mroverlord @ Jun 11th 2008 1:08PM
I wish this POS would just go away. He does nothing but wreck car companies every time he meddles in their affairs.
D @ Jun 11th 2008 2:08PM
I though that was magneto
wrussi @ Jun 11th 2008 4:51PM
one day i wanna be like this guy.