Kerkorian Picks Up 19 Million GM Shares
Billionaire Kirk Kerkorian managed to buy a fair chunk of the 28 million General Motors (nyse: GM - news - people ) he had been bidding for at $31 apiece. His bid, made through his investment vehicle Tracinda, expired yesterday with nearly 19 million shares tendered. Tracinda will snap up all 18,926,557 shares tendered, boosting Kerkorian's stake in GM to 40.9 million shares or 7.2% from 22 million shares or 3.89%. Kerkorian, who claims the offer is for investment purposes only, was originally targeting a neat figure of 50 million shares. The GM board will be watching Kerkorian closely--it had said it would remain neutral on the offer, but its position could now change if it sees evidence of Kerkorian flexing his muscles. According to media reports, Kerkorian's purchase will make him the third largest shareholder at GM. Yesterday at an annual meeting for GM shareholders, Chairman and Chief Executive G. Richard "Rick" Wagoner announced plans to cut 25,000 manufacturing jobs and close some plants by 2008, thereby saving the automaker around $2.5 billion per year. More...
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