York is Resigning GM Board - Kirk not buying more

[bdubsee]

Kerkorian won't buy more GM

GM's No. 1 individual shareholder says due to end of Nissan-Renault talks he won't try to buy 12M more shares; Kerkorian's advisor quits GM board.

October 6 2006: 12:28 PM EDT

NEW YORK (CNNMoney.com) -- Kirk Kerkorian, General Motors's largest individual shareholder, has dropped plans to buy another 12 million shares of the company's stock, and his advisor Jerome York has resigned from the GM board, due to the company breaking off alliance talks with Renault and Nissan.

The moves were announced Friday in a filing with the Securities and Exchange Commission by Tracinda, Kerkorian's own investment firm. Tracinda already owns 56 million shares of GM (Charts), a 9.9 percent stake in the company.

Kirk Kerkorian

Kerkorian, formerly the lead shareholder in Chrysler when it was purchased by Daimler-Benz to form DaimlerChrysler (Charts), was the one who pushed GM to pursue an alliance with Renault and Nissan (Charts). The companies announced Wednesday they had broken off the talks because Nissan and Renault was unwilling to pay GM to join their existing alliance.

Kerkorian had only disclosed his intention to buy additional GM shares last week, saying in the filing at the time that he still saw promise in the alliance. He expressed disappointment Wednesday when the talks were halted...

http://money.cnn.com/2006/10/06/news/compa...sion=2006100612

Edited October 6, 2006 by bdubsee

[Guest buickman]

Preliminary blurb from CNN.com

Dissident General Motors shareholder Kirk Kerkorian says he will not acquire additional stock in the company and his representative on the board is resigning, The Associated Press reports.

202017[/snapback]

Rick better hold his breath. If KK starts dumping stock, the bottom will fall out fast.

Buickman

[Satty]

So the merger falls through and Kirk throws a hissy fit, pulls York from the board and says he wont acquire more stock and he may end up dumping all of the stock he does own. Mature.

[Drew Dowdell]

Rick better hold his breath. If KK starts dumping stock, the bottom will fall out fast.

Buickman

202019[/snapback]

If that did occur then it will be time to buy more stock. The stock isn't at 32 because Kirk is a shareholder. At worst there would be a temporary dip and the stock would rebound.

Sounds like Kirk is going to help me make even more money.

[Guest buickman]

If that did occur then it will be time to buy more stock.  The stock isn't at 32 because Kirk is a shareholder. At worst there would be a temporary dip and the stock would rebound. 

Sounds like Kirk is going to help me make even more money.

202022[/snapback]

GM is all but bankrupt. You had better sell your stock (and go short or buy puts) and fast! The price will drop under twenty by month end is my prediction without support from KK.

Buickman

Edited October 6, 2006 by buickman

[tama z71]

GM is all but bankrupt. You had better sell your stock (and go short or buy puts) and fast! The price will drop under twenty by month end is my prediction without support from KK.

Buickman

202023[/snapback]

Can you support that claim with references more credible than Robert Farago?

[Satty]

GM is all but bankrupt. You had better sell your stock (and go short or buy puts) and fast! The price will drop under twenty by month end is my prediction without support from KK.

Buickman

202023[/snapback]

Ok, On Halloween I want to re-visit this thread and laugh my ass off.

[Drew Dowdell]

You know what is odd? In announcing this move, Kirk has killed any chance of getting out of his GM stock profitably. He should have just kept saying "yeah, I'm planning on buying more stock" while quietly selling bits and pieces and calling it a "portfolio adjustment".

I'm calling his bluff, this is just a retaliatory move on Kirks part.

[bdubsee]

The stock has dropped $2+ (from $33.13 open) since noon. In context, the stock was just over $29 on 9/5 and under $28 on 7/17. It will be interesting to see how this pans out.

Edited October 6, 2006 by bdubsee

[bdubsee]

Interesting quote from the 13 D filing of Tracinda:

The Filing Persons have decided not to pursue the acquisition of additional shares of General Motors common stock. The Filing Persons will continue to review their investment in General Motors and may determine, based on market and general economic conditions, the business affairs and financial condition of General Motors, the market price of its shares and other factors deemed relevant by the Filing Persons, to acquire or dispose of additional shares.

Complete document:

http://www.sec.gov/Archives/edgar/data/407...199/dsc13da.htm

Edited October 6, 2006 by bdubsee

[regfootball]

Buickman, if GM is so bankrupt, then go ahead and sell toyotas.

[Mr.Krinkle]

this guy gets a hard on just knowing the stock will rise if he says boo and drop when he sees peep.

clearly, he wanted the best for gm and this proves he only had their best intentions in his heart.

stock is still a buy. theres gonna be a lot more to this story, and can only wonder what carlos really had in mind that the board told him to hit the road jack.

[Camino LS6]

Good riddance to bad rubbish.

[nzr]

Good.

[Mr.Krinkle]

LOL....um...I'll assume you werent being sarcastic.

202049[/snapback]

yea, i suppose its a little funnier that way.

this is gonna be going all day with plenty of updates, but this from bloomberg

outlines some of the possible next steps.

everyones gotta be saying to themselves, "kirks playing with the stocks again."

hes gotta want something...

http://www.bloomberg.com/apps/news?pid=206...yZZw&refer=news

CNBC just got a hold of York's resignation letter. York cites a bad boardroom environment and bad leadership from Wags.

yeah, they didnt want to do what he said...

Edited October 6, 2006 by Mr.Krinkle

[Drew Dowdell]

it lost about $1.80 today and has since stabilized with volume back to normal levels. Still above $31

[FAPTurbo]

The guy is showing his true colours. He's a corporate raider, simple as that... and a big baby of a fossil.

If he really wanted to save GM, he'd blow off the failed Renault-Nissan idea and try and find another way or method to help... not give up and throw a hissy fit.

[Cadillacfan]

Does this mean Buickman will have to wait longer for Rick to leave? Aww. I feel so bad for him. Well, at least he has a large support group over at GMI.

Everyone knows that Kerkorian was only hoping to profit off of the merger and then leave. He was the one who initiated it in the first place. He couldn't have cared less about GMs future and his backing out just gives us proof of his true intentions.

Now, he has his lapdog York badmouthing the board and Wagoner to the press hoping people will think twice about buying stock. They're doing this because thier pride was hurt.

Don't let the door hit you on the way out.

[Northstar]

So, Buickman, if Kerkorian is such a supporter of GM, why does he pull his man from the GM Board after this? Shouldn't he still be trying to help GM and having someone on the Board to make some good decesions?

Oh, wait, he never really cared about GM. He just saw an oppurtunity to make a lot of money, implemented his plan, which didn't work, and now doesn't give a $h! about GM (as evidence from York "resigning" aka Kerkorian not caring anymore) because his plan fell through and he can't make as much money as he wanted too.

[BigPontiac]

Text of York's resignation letter

[ichbinjohnk]

Isn't there some way to finally get buickman off of this site and keep him off?

[Robert Hall]

Good to hear York is out..one less distraction for the General, IMHO.

[Guest buickman]

Prelude to the lawsuit.

the voice...

[FAPTurbo]

Now didn't Kirk try the same thing with Chrysler? He then ended up taking them to court, only to get laughed out of it?

Like I said before... if this guy had GM's interests in mind, he wouldn't give up like this, pull his main man on the board and declare he isn't buying more stock.

The old guy's gettin' older and still trying to get richer. I hope Wags gave him a theoretical "one between the eyes" with this situation. Maybe Kirk will realize that maybe he's wealthy enough, and should begin to maybe use some of his cash to better the world.

[Guest buickman]

Word is that York is already lining up new management to replace Red Ink Rick and his inept cohorts. Wagoner may have been able to withstand the onslaught from Buickman, but Casinoman is another story. I, for one, am in favor of KK and Co., if only as the lesser of two evils.

the voice...

[balthazar]

According to Jim Cramer, the stock's performance subsequent to the York announcement has everything to do with York's resignation and not KK's likelyhood of selling off his stock. York has an impressive resume as a cost-cutter and reformer for a handful of major companies (IBM among them)- he is the catalyst here.

[regfootball]

COST CUTTING IS NOT THE TICKET TO AUTOMOTIVE PROSPERITY.

HAVEN'T WE PROVED THIS BY NOW?

giving the customer what they want and not squandering money in the process, that is the recipe.

[Guest buickman]

COST CUTTING IS NOT THE TICKET TO AUTOMOTIVE PROSPERITY.

HAVEN'T WE PROVED THIS BY NOW?

giving the customer what they want and not squandering money in the process, that is the recipe.

202161[/snapback]

We occasionally disagree, but not on this. You are right on the money. Your claim is exactly the reason Wagoner needs to be held accountable and shown the door.

the voice...

[Guest buickman]

Isn't there some way to finally get buickman off of this site and keep him off?

202115[/snapback]

Sure, write me a check for $10 Billion. When it clears. I'll leave.

the voice

[drew770]

Sure, write me a check for $10 Billion. When it clears. I'll leave.

the voice

202170[/snapback]

Why would you support a group of people that wanted to sell GM and it's history to the highest bidder!!!

GM would have gotten nothing from this so called alliance and if you supported it then you were just as blind by money as KK and York.

For someone that Loves GM then you have a funny way of showing it.

I want to see an independant GM that relies on American know how to get things done!!!!! Not foreigners that have no idea of GM's glorious history.

Alliance was a no go from the start and KK and York could have done alot of good for GM if they wanted to work within!!!

[BigPontiac]

According to Jim Cramer, the stock's performance subsequent to the York announcement has everything to do with York's resignation and not KK's likelyhood of selling off his stock. York has an impressive resume as a cost-cutter and reformer for a handful of major companies (IBM among them)- he is the catalyst here.

202148[/snapback]

Lou Gerstner reformed IBM, not York. His cost cutting caused an exodus of the top talent at IBM at the time. He was only there about 3 years if my memory serves me correctly. Funny how there's little mention of his stint as CEO of Micro Warehouse...how did that turn out??? He and his buddy Gary Wilson from Northwest Airlines... How 'bout Chrysler ?

[Mr.Krinkle]

the guys a vulture and im sure hes only waiting to release the hounds...he treats business like a repo man. the problem for him, gm is a little healthier than he thought.

by healthier i mean not withering away with the bones showing.

they got offered a sucker deal, hardly any return on the investment and

decided it wasnt in their, or their stockholders best interest.

he wants to call the shots, probably would have made a boatload of cash and 5-10 yrs down the road GM winds up royally screwed.

thats my take on it from the statements...

rest assured hes gearing up for something new. sadly this probably really is only the beginning.

Edited October 6, 2006 by Mr.Krinkle

[91z4me]

We occasionally disagree, but not on this. You are right on the money. Your claim is exactly the reason Wagoner needs to be held accountable and shown the door.

the voice...

202167[/snapback]

So your saying Rick needs to cut cost, like eliminating TONS of excess jobs by starting the employee buyouts? How about his alliance of Saturn and Opel, eliminating redundant jobs? What about bringing Holden's expertice to GMNA and buying and then expanding GM Daewoo, the best deal in the auto industry EVER?!

Do you not think these were good cost cutting moves? Oh wait you didn't see any more profit on the retail end so it must not have been good for GM.

[nightwave]

Oh, don't forget, that expanding Buick would have solved many problems! After all, Buick has got to be a goldmine. I mean, if they're selling so well in Michigan, they should be everywhere, shouldn't they?

[/sarcasm]

[Guest buickman]

Wagoner only seems to understand cutting and spinning. He missed the greatest Buick demographic in history, the boomers. as they passed right through Buick's niche. It is one of the greatest failings in the history of the auto industry. We blew our best chance by starving the cornerstone.

Buickman

the voice...

[drew770]

Why in the hell does it always take an outsider to cut costs. Yes, GM can still cut costs but I haven't heard not 1 good suggestion from FoxNews Business experts, CNBC or Jim Cramer about how GM can solve it's legacy costs problems.

So Mr. Cramer, how do GM cut health care cost and pension payouts????

Do we dump UAW and shift all the work to China and Mexico?

Most of these so called business experts (jerks) would want to GM to kick UAW to the curb and shift all manufactoring to China if they got their way.

[Camino LS6]

The cornerstone of GM is most certainly not Buick (except in a vague historical sense).

The Cornerstone is Chevrolet.

[ellives]

How about we all accept your bet and if you lose, your end of the bargain is to disappear from the GM landscape altogether?

GM is all but bankrupt. You had better sell your stock (and go short or buy puts) and fast! The price will drop under twenty by month end is my prediction without support from KK.

Buickman

202023[/snapback]

[Drew Dowdell]

Wagoner only seems to understand cutting and spinning. He missed the greatest Buick demographic in history, the boomers. as they passed right through Buick's niche. It is one of the greatest failings in the history of the auto industry. We blew our best chance by starving the cornerstone.

Buickman

the voice...

202376[/snapback]

If Wagoner missed the boomers with any division, he missed it with Oldsmobile. The Intrique was to be aimed at the Camry drivers, Aurora to the ES and GS drivers <of the day>. Olds came closer, at least in product, than Buick ever has... and in this one regard, you are correct. Oldsmobile hadn't been marketed correctly since about 1987. Good marketing of Olds might have saved the brand considering their versions of each platform were the best of each respective platform.

[4gm]

I think Kirk wants GM's stock price to drop so he can buy more shares. That's why York resigned. They knew stocks would go down if he did. GM will announce an operating profit for the 3rd quarter, the second one in a row, so Kirk will try and make a major stock purchase soon. That's my guess. He'll try and overthrow Rick and the board, which will be ugly, but ultimately unsuccessful.

[Drew Dowdell]

GM is all but bankrupt. You had better sell your stock (and go short or buy puts) and fast! The price will drop under twenty by month end is my prediction without support from KK.

Buickman

202023[/snapback]

One business day later.... stock is up about 1% for the day.

[Drew Dowdell]

up another 1.17% today.....

[Guest buickman]

up another 1.17% today.....

203471[/snapback]

If KK isn't packing it in and instead chooses to fight, the stock will certaiinly rise, maybe over 40 shortly. A good old fashioned proxy fight can be good for the little fish. Be sure to sell on the way up.

the voice...

Edited October 10, 2006 by buickman

[Drew Dowdell]

If KK isn't packing it in and instead chooses to fight, the stock will certaiinly rise, maybe over 40 shortly. A good old fashioned proxy fight can be good for the little fish. Be sure to sell on the way up.

the voice...

203474[/snapback]

Kirk just said he wasn't buying more, he didn't say he was selling.

[Mr.Krinkle]

really, generally i like to give the benefit of the doubt but this is ridiculous at this point now. this just aint right.

[FAPTurbo]

ok needle dick. you have no idea what youre talking about.  stop being this hysterical whiny lowlife loser jerk off that doesnt know when to shut his own

stupid mouth.  you dont know what you are talking about,  no one gives a hairy rats ass what you say so just go already.  take your shares and go.  no one will miss you. 

you spread lies, misinformation, and create hysteria for no other reason than your own perceived personal gain.  well, really no one cares.  sell buicks or hondas or fiats or skodas no one cares.  start a lemonade stand for anyone cares.  really now.

the sky isnt falling and you need to get a grip.  know your role sucka.  or wind up like durant.  what size are you agian?

203553[/snapback]

Uh... wow...

Hard day at work?...

[Mr.Krinkle]

Uh... wow... 

Hard day at work?...

203556[/snapback]

no. not really.

[Drew Dowdell]

up another 1% today...

they keep increasing at 1% a day and in two days they'll hit a 12 month high.

[GMman]

The buyout of Chrysler really helped them, huh? If an "alliance" with nissan/renault could benefit GM, why would Rick & co. be against it? They would benefit right along with the rest of the company and it's shareholders. Doesn't make any sense. The shareholders of Chrysler were lied to about their "merger" that was really a buyout. Foreign companies don't always have the answer....