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FTC Allows Kerkorian to Up GM Stake
By - 10/11/2005 - Los Angeles Business Journal Staff
The Federal Trade Commission said on Tuesday it would not oppose a plan by
billionaire investor Kirk Kerkorian to increase his stake in General Motors
Corp. and possibly seek a seat on GM's board, Reuters reported.
U.S. antitrust authorities have completed their investigation of the
proposal without taking any further action, the Federal Trade Commission
said in a notice.
On Sept. 21, Kerkorian's Tracinda Corp. said it might ask for representation
on General Motors' board and that it intends to raise its stake in the
automaker.
In a filing with the Securities and Exchange Commission, Tracinda, which now
holds a 9.53-percent GM stake - or 53.9 million shares - said it plans to
increase its ownership interest to as much as 9.9 percent of outstanding
shares. Tracinda had sought approval from antitrust officials as well.
On May 4, Tracinda, the majority owner of casino and hotel chain MGM Mirage,
announced a tender offer to pay $870 million to buy up to 28 million shares,
or nearly 5 percent of total General Motors stock.
Tracinda ended up purchasing 18.9 million shares, leaving it 9.1 million
shares short of the stated goal. However, in a Sept. 1 filing, the Beverly
Hills-based company said it had increased its GM stake to 9.53 percent in
three separate private transactions, starting in late August.
By - 10/11/2005 - Los Angeles Business Journal Staff
The Federal Trade Commission said on Tuesday it would not oppose a plan by
billionaire investor Kirk Kerkorian to increase his stake in General Motors
Corp. and possibly seek a seat on GM's board, Reuters reported.
U.S. antitrust authorities have completed their investigation of the
proposal without taking any further action, the Federal Trade Commission
said in a notice.
On Sept. 21, Kerkorian's Tracinda Corp. said it might ask for representation
on General Motors' board and that it intends to raise its stake in the
automaker.
In a filing with the Securities and Exchange Commission, Tracinda, which now
holds a 9.53-percent GM stake - or 53.9 million shares - said it plans to
increase its ownership interest to as much as 9.9 percent of outstanding
shares. Tracinda had sought approval from antitrust officials as well.
On May 4, Tracinda, the majority owner of casino and hotel chain MGM Mirage,
announced a tender offer to pay $870 million to buy up to 28 million shares,
or nearly 5 percent of total General Motors stock.
Tracinda ended up purchasing 18.9 million shares, leaving it 9.1 million
shares short of the stated goal. However, in a Sept. 1 filing, the Beverly
Hills-based company said it had increased its GM stake to 9.53 percent in
three separate private transactions, starting in late August.