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US: Kerkorian offloads more GM shares
1 December 2006| Source: just-auto.com editorial team
Dissenting _GM_ (http://www.just-auto.com/factsheet.aspx?id=73)
sh areholder Kirk Kerkorian is offloading more GM shares. His Tracinda
Corp said Thursday it will sell the shares today (Dec 1) in a private
transaction for US$28.75 each, or a total of US$402.5m.
The move reduces Kerkorian's holdings to 28m shares, or 4.95%, half of
what it was about a week ago.
Kerkorian, 89, was GM's second-largest shareholder with 56m shares;
now he will be its fifth-largest shareholder - if he has not fully
relinquished his GM position yet..
The stake may well be lower than that. The Wall Street Journal,
quoting an unnamed source, reported in its online edition Friday that
Tracinda subsequently sold its remaining 28 million GM shares - taking
the stake to zero. The newspaper reported that the shares were sold to
Bank of America, a key lender to Kerkorian.
That report remains unconfirmed. But by reducing his stake to less
than 5%, Tracinda no longer faced disclosure requirements for
intentions on GM. Kerkorian would therefore be able to sell off his
remaining shares without filing with the SEC.
Analysts say that Kerkorian was unhappy with the outcome of GM's
discussions with Renault-Nissan over GM joining the alliance - the
talks broke up amid disagreement over compensation for GM for the
considerable volume benefits it would bring the alliance.
Kerkorian was instrumental in bouncing GM's management into the talks
in the summer. But GM's fortunes subsequently improved and the
management was able to claim that the existing restructuring plan is
on track.
1 December 2006| Source: just-auto.com editorial team
Dissenting _GM_ (http://www.just-auto.com/factsheet.aspx?id=73)
sh areholder Kirk Kerkorian is offloading more GM shares. His Tracinda
Corp said Thursday it will sell the shares today (Dec 1) in a private
transaction for US$28.75 each, or a total of US$402.5m.
The move reduces Kerkorian's holdings to 28m shares, or 4.95%, half of
what it was about a week ago.
Kerkorian, 89, was GM's second-largest shareholder with 56m shares;
now he will be its fifth-largest shareholder - if he has not fully
relinquished his GM position yet..
The stake may well be lower than that. The Wall Street Journal,
quoting an unnamed source, reported in its online edition Friday that
Tracinda subsequently sold its remaining 28 million GM shares - taking
the stake to zero. The newspaper reported that the shares were sold to
Bank of America, a key lender to Kerkorian.
That report remains unconfirmed. But by reducing his stake to less
than 5%, Tracinda no longer faced disclosure requirements for
intentions on GM. Kerkorian would therefore be able to sell off his
remaining shares without filing with the SEC.
Analysts say that Kerkorian was unhappy with the outcome of GM's
discussions with Renault-Nissan over GM joining the alliance - the
talks broke up amid disagreement over compensation for GM for the
considerable volume benefits it would bring the alliance.
Kerkorian was instrumental in bouncing GM's management into the talks
in the summer. But GM's fortunes subsequently improved and the
management was able to claim that the existing restructuring plan is
on track.