Ford tells shareholders to hold off on Tracinda offer

Ford has told its shareholders to hold out for an official appraisal from the Blue Oval before taking action in regards to a tender offer from the Tracinda Corporation. The investment firm, belonging to billionaire investor Kirk Kerkorian, is offering to purchase 20 million shares at a price of $8.50 each, 41c greater than the stock’s closing price on Friday.

Tracinda already owns 100 million shares of Ford, and the acquisition of 20 million more would give the company a 5.5% stake in the Blue Oval. Tracinda has stated that they are also open to purchasing more shares, and under the move may even offer Ford business strategies after an evaluation of the company's operations.

Ford executives stated that the entire investment by Kerkorian was a surprise as they had been given no warning of the move, and the company is still reviewing the latest offer from the billionaire investor, reports Automotive News.

Tracinda Corp, meanwhile, is convinced that Ford is an attractive investment due to its "pending turnaround strategy", however previously Jerry York of Tracinda Corp has stated that in his view Ford should get rid of Mercury in light of the brand's recent streamlining.