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.
Despite the rumors of contentiousness surrounding Kirk Kerkorian's Tracinda Corporation and its agitation in Dearborn, Ford reports that a recent talk between Executive Chairman Bill Ford Jr., CEO Alan Mulally, and the investment firm were informal and positive. Never a shrinking violet, 91-year-old Kirk Kerkorian has held large stakes of each of the Detroit 3 in the past. Tracinda's most recent foray into Ford's stock coincides with a shift by the Blue Oval away from its historically strong gro
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. K
We just reported that a group of Chrysler employees in Toledo are crafting a proposal that would have the automaker's 50,000 UAW workers buy a controlling stake in the automaker. The proposed worker buyout offer is already stirring up a reaction among the major players involved in the potential sale of the Chrysler Group. Buzz Hargrove, president of the Canadian Auto Workers union, told Automotive News this morning that his organization is not interested in the proposal being put together by the
As 4,312 hourly Chrysler workers in Canada and the US accepted early retirement and buyout plans, Kirk Kerkorian released a statement again asserting his desire for a "true partnership" with the UAW and Chrysler management that would entail "equal sharing in the 'risks and rewards'" of a sale to his company, Tracinda. While acknowledging that a successful purchase by Tracinda couldn't (or at least, shouldn't) happen without all parties involved welcoming the deal, Kerkorian calls his plan for th
Tracinda, billionaire investor Kirk Kerkorian's company, sent two letters today, one to DaimlerChrysler's CEO Dieter Zetsche and the other to the Supervisory Board, detailing an offer of $4.5 billion in cash to buy the Chrysler Group. Kerkorian, who has been major Chrysler shareholder for more than ten years, tried to buy the company in 1995 with Lee Iaccoca but met with rejection, and following that was a factor in the DaimlerChrysler merger. Sensing a second opportunity, he has done his usual
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.
Rick Wagoner may have won the Renault-Nissan battle, but the boardroom wars are far from over for General Motors' beleagured chief executive. Wall Street analysts are telling investors to brace themselves for a lengthy and bitter fight for control of the company's board of directors, led by dissident shareholder Kirk Kerkorian.
"Screw you guys, I'm going home." A phrase made famous by Cartman from South Park but one that we find so apt for news coming out of General Motors this afternoon. Royally irked over the ending of alliance talks with Renault/Nissan, billionaire investor Kirk Kerkorian has announced that he won't buy an additional 12 million shares of GM stock as he said he would, and that his advisor/muscle Jerry York has resigned his seat from the board of General Motors. The additional 12 million shares would'
UPDATE: They Speak! Official release addressing dissolution of talks after jump.
Rick said it; General Motors does not need a partner to complete its recovery. According to an interview with Wagoner by Automotive News, the CEO of GM thinks 'It's not logical or responsible to say we must have a partner to recover.' GM is currently studying whether it will allow billionaire investor Kirk Kerkorian to bring the General into a permanent alliance with Nissan and Renault. Wagoner's interest in any venture, simply put, is about selling more vehicles. As for any new deal with Ford,
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.
According to the Japanese business daily Nhon Keizai, Nissan and Renault have already decided what areas of cooperation they would seek from General Motors if a proposed alliance between the three companies became a reality. Those three areas are parts procurement, environmental and safety technology.
With Nissan's board of directors already on record as supporting discussions of the possible three-way deal between General Motors, Nissan and Renault, the French automaker's board met Monday to discuss the Ghosn and Kerkorian proposal. The company issued a terse press release after the board meeting, saying "The Board of Directors approved the position proposed by Carlos Ghosn: Exploratory discussions with General Motors, concerning a potential alliance, could start if General Motors Corporatio
Retired Chrysler chairman (and Snoop Dogg homey) Lee Iacocca will be releasing a book in approximately one year, tentatively titled "Where Have All the Leaders Gone?". It's said to cover several topics, among them the state of the American auto industry and the threat that the US manufacturing economy faces from China and India.
Saab and HUMMER won't be hitting the Orphan Car Show anytime soon, says Rick Wagoner. General Motors' top guy told shareholders yesterday that the company won't be taking the advice of new board member Jerry York, billionaire investor/GM stakeholder Kirk Kerkorian's right-hand man. York made waves in the industry just before he joined the board, when he gave a speech suggesting that GM axe the Saab and HUMMER brands, among other suggestions.