Kirk Kerkorian may buy up to 12 million additional shares of GM stock, according to Automotive News. The billionaire investor would need approval from the Securities and Exchange Commission for the deal because it would send his company, Tracinda Corporation, well over 10 percent ownership of GM common stock.
The move supports GM's potential alliance with Renault/Nissan, a merger that Kerkorian has battled for from the beginning. Officially, Tracinda said this in the filing with the SEC:
"Tracinda continues to believe that a strong opportunity exists in a potential alliance between General Motors, Renault and Nissan and that there should be strong General Motors board involvement in the analysis of such a potential alliance, including the utilization of independent advisors."
We're interested to see what power this gives Kerkorian and right-hand man Jerry York, whom Kerkorian has placed onto GM's board of directors.
[Source: Automotive News]