• Oct 29th 2008 at 10:01AM
  • 12
Just four months ago, Kirk Kerkorian had a cup out and was asking passers-by for some spare Ford shares. Although he only wanted 20 million of them, he was offered one billion. Turns out those folks trying to get out of the Ford ownership business might have been a bit more prescient than the Tracinda billionaire. After a couple more weeks of watching Ford's share price begin digging toward the center of the earth, Kerkorian seems to want out of Ford himself.
A week ago Tracinda shed 7.3 million shares, and now it has unloaded another 26.4 million at an average price of $2.01 per share. That's about $6 less than he paid for them. Kerkorian used a $600 million line of credit from Bank of America to finance the original billion dollar investment in Ford, using shares in his MGM casino for collateral. In addition to the loss on the Ford investment, MGM's stock price hasn't held up either, and that means he's had to commit more of the casino to B of A. Kerkorian's latest divestment takes him under 5% ownership of The Blue Oval, which means he doesn't have to divulge any more share sales, but we have a feeling it won't be the last.

[Source: Bloomberg]

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    • 1 Second Ago
      • 6 Years Ago

      Most people over 90 years of age are long retired. But Kerkorian is still working as any young person would. That alone is a reason to admire and respect him.
        • 6 Years Ago
        I don't think he is 90.
      • 6 Years Ago
      He's just getting for tax time.
      • 6 Years Ago
      C'mon, cut him a break, he got excited for the Flex and it isn't selling well. Nobody could've seen that coming. Buy now and dump the stock when the Fiesta comes out.
      • 6 Years Ago

      He should have just played black-jack or roulette in one of his casinos instead of this manuever.
      • 6 Years Ago
      • 6 Years Ago
      Margin Calls. Quite a few executives are being forced to sell their shares (most at a large loss) to make the margin calls. http://en.wikipedia.org/wiki/Margin_call#Margin_call
      • 6 Years Ago
      Points and laughs at him -----> HAHA
      • 6 Years Ago
      Since his original purchase was all borrowed $ to begin with I think he's extra skittish. Then when all the credit problems happened he now knows that it take much longer for Ford to return to profitability (if ever) and he just doesn't have the time. Or he's found another company that is better poised to rebound.
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