Kerkorian cuts his stake in GM

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Viknesh Vijayenthiran November 22nd, 2006

By Viknesh Vijayenthiran Author November 22nd, 2006

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December 31st, 1969 Tracinda Corp led by Billionaire investor Kirk Kerkorian has cut its stake in General Motors from 9.9% to 7.4%, a month after Kerkorian's ally Jerry York resigned from GM’s board. Tracinda sold $462 million worth of the carmaker’s stock, which equates to roughly 14 million shares. Kerkorian was one of the key backers for the alliance with Renault-Nissan but after this fell through, it’s believed that he has lost confidence in the firm. He and York secretly arranged the negotiation with Renault-Nissan, letting GM CEO Rick Wagoner find out via a private letter that was also released to the public. The move supposedly ticked off Wagoner, who was said to be against the alliance from the start.

Kerkorian cuts his stake in GM

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Tracinda Corp led by Billionaire investor Kirk Kerkorian has cut its stake in General Motors from 9.9% to 7.4%, a month after Kerkorian's ally Jerry York resigned from GM’s board. Tracinda sold $462 million worth of the carmaker’s stock, which equates to roughly 14 million shares.

Kerkorian was one of the key backers for the alliance with Renault-Nissan but after this fell through, it’s believed that he has lost confidence in the firm. He and York secretly arranged the negotiation with Renault-Nissan, letting GM CEO Rick Wagoner find out via a private letter that was also released to the public. The move supposedly ticked off Wagoner, who was said to be against the alliance from the start.

Tags: Industry, General Motors