Kerkorian To Eye Board Seat

[Guest Josh]

Kerkorian's Tracinda Plans to Boost Stake in General Motors, May Seek Representation on Board

NEW YORK Sep 21, 2005 — Tracinda Corp., the private-equity firm owned by billionaire investor Kirk Kerkorian, said Wednesday it plans to boost its stake in General Motors Corp. to as much as 9.9 percent and may approach the world's biggest automaker about getting representation on its board.

The Beverly Hills, Calif., investment group has been steadily growing its stake in GM while continuing to downplay suggestions that it is looking to increase its influence over the company. Kerkorian, formerly the owner of movie maker MGM Mirage, has a history of wrestling with automakers in his long-running fight against the merger between Chrysler Corp. and Daimler-Benz AG.

On Wednesday, Kerkorian's group said it plans to increase its 9.5 percent stake in GM to no more than 9.9 percent once a 30-day waiting period has ended. The group also said in a securities filing that it "may engage in discussions with General Motors concerning possible representation on its board of directors."

In September, Tracinda disclosed that it was boosting its stake in GM to 9.5 percent, after nearly doubling its ownership to 7.2 percent in June through a tender offer.

A GM spokesman said the company typically doesn't comment on shareholder actions.

Tracinda said it is buying GM shares solely for investment purposes and doesn't aim to gain or influence control over GM's business at the present moment.

But George Magliano, an auto analyst with Global Insight, said Kerkorian doesn't have a history as a quiet investor.

"It doesn't make sense to buy an appreciable amount of stock and not look to exert influence or find some way of getting good payback," Magliano said.

GM shares fell 38 cents to close at $30.70 Wednesday on the New York Stock Exchange, where they have traded in a 52-week range of $24.67 to $43.29.

http://abcnews.go.com/Business/wireStory?i...TC-RSSFeeds0312

[turbo200]

WHOA. Is all I can say, not that I didn't expect this, and I don't know what, if any, reprucussions it could have, and I don't forsee any bad results. But still, that title just made me go whoa.

[Guest Josh]

First thing is this. You don't nearly double your ownership in a company in about 4 months and not have a meaning for it. 2nd is Lutz has said Kerkorian has had no contact with GM regarding future vehicles. I think Kerkorian should...because once he does his stake in the company will increase 10 fold.

[bowtie_dude]

I'm not sure if GM needs another bean counter business man.

[Newbiewar]

First thing is this. You don't nearly double your ownership in a company in about 4 months and not have a meaning for it.

2nd is Lutz has said Kerkorian has had no contact with GM regarding future vehicles. I think Kerkorian should...because once he does his stake in the company will increase 10 fold.

[post="18006"]<{POST_SNAPBACK}>[/post]

why would he care if you intended to spin off all the automotive devsions?

Why would he care if he intended to spin off GMAC?

[Clownzilla]

It's simple, I think he just wants his investment to work, good for us or bad for us, he just wants good returns. Can't blame him though for wanting a seat, he spent some MAJOR cash on GM stock. Don't know what this will really mean for us though (besides him wanting to spin off GMAC).

[Newbiewar]

Does he want to change the way GM runs or does he just want a bigger piece of what he assumes will be an ever growing pie? Hard to tell. Though if you look at his other business ventures he seems to know what he's doing.

[post="18205"]<{POST_SNAPBACK}>[/post]

looking at his success with MGM he has spun lots of stuff off of that, I'm almost certain he'll spin off the other automotive brands GM has... and they would be very difficult to do, because they all use the same technology now...

[Guest Josh]

I personally think Kirk has no idea what he's doing.

[boblutzfan]

He should have a seat on the board. I presume he is one of the, if not the largest individual shareholders of the worlds largest automotive company. If I had nearly 10% stake - I would want representation on the board. You don't get to be that rich on purely dumb luck.

[Cadillacfan]

I agree when people say that he wants GM just because of GMAC. I mean, why else would anyone want to have control over a company that's losing billions each year. If he truly wants GM's automotive unit, I still fear that what he has in store will send GM in a direction that all of it's employees and enthusiasts won't like.

[Clownzilla]

I agree when people say that he wants GM just because of GMAC.  I mean, why else would anyone want to have control over a company that's losing billions each year.  If he truly wants GM's automotive unit, I still fear that what he has in store will send GM in a direction that all of it's employees and enthusiasts won't like.

[post="18395"]<{POST_SNAPBACK}>[/post]

I agree. People need to understand that no matter what he does, he is doing it 100% for more money. He is an investor and thats what he does. He could care less about what other people think GM should do, he will use his clout to do what he thinks should be done (He will only get to about 9.9% clout though). Still, up to 9.9% is a lot of stock. He has already stated that GMAC is WAY undervalued because of it's connection with GM, which from a business standpoint is VERY true. GMAC actually makes money, GM does not. I think all he wants to do is try to convence GM to spin off GMAC, not help GM. If anything he will hurt GM by taking away it's only big profit making center.