Kerkorian cuts Ford stake, says could sell all shares
Written on October 22, 2008
Billionaire investor Kirk Kerkorian lowered his stake in Ford Motor Co to 6.1 percent and said he could sell the remainder of his shares in the No. 2 U.S. automaker.
News of a possible exit by the single largest shareholder in Ford sent its shares down nearly 4 percent.
The move comes after a more than 60 percent decline in Ford shares since Kerkorian raised his stake to 6.5 percent in June and said he was willing to support the automaker’s turnaround with an infusion of additional capital.
Kerkorian’s offer of capital had been widely seen as a boost to Ford’s restructuring plans at a time when Detroit’s three automakers face increasing scrutiny over their ability to ride out a sharp downturn in U.S. auto sales.
General Motors Corp and Chrysler LLC are in talks about combining the two American automakers in an attempt to shore up cash and survive the industry slump, sources familiar with the plans have said payday advance lenders.
Kerkorian’s investment vehicle Tracinda Corp said on Tuesday it was reallocating its resources to focus on gaming, hospitality, oil and gas industries where it sees value in light of current economic and market conditions.
Kerkorian, who has invested $1 billion for 140.8 million Ford shares, saw his investment sour over the past months as U.S. auto sales dropped to 15-year lows amid tightening credit and slumping housing prices.
Ford’s U.S. sales are down 17 percent in the first nine months of the year, a steeper decline than the industry’s 13 percent drop.
Filed in: money.