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Kerkorian offloads another 26.4 million Ford shares

 
5 2,469 views Oct 28, 2008

The $9.9 billion represents a 28% reduction in Ford’s overall debt

The $9.9 billion represents a 28% reduction in Ford’s overall debt

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Tracinda Corp, led by billionaire investor Kirk Kerkorian, has sold another 26.4 million shares of Ford stock according to a new SEC filing. The shares were sold between October 21-28 at an average price of $2.01 per share, a drop of more than 20% over the smaller liquidation made last week. Kerkorian's remaining stake in Ford now sits at 4.9%.

Last week Tracinda announced in a regulatory filing that it had sold 7.3 million of its shares in Ford at an average price of $2.43 per share. The move came just months after Tracinda raised its stake in the Blue Oval to 6.49% via its $8.50 per share June tender offer.

The new sell-off leaves Tracinda’s stake in Ford at 106.8 million shares, and depending on market conditions and available sales prices, the rest of the shares could potentially go as well. The company has confirmed contact with an investment banking firm regarding the possible sale.

This has also lead to speculation that both Kerkorian and Tracinda could leave the automotive industry for good, and instead look towards the gaming, hospitality and oil and gas sectors to fund future growth.

Ford’s share price has dropped more than 60% since the original June deal, and is currently trading around $2.14 on Tuesday, reports Bloomberg.

Kerkorian has been very active in the U.S. auto industry over the past couple of years. Last year his firm was one of the main bidders for Chrysler but lost out to private equity firm Cerberus Capital Management, and before that he held a 9.9% stake in GM. He offloaded his shares in the General back in 2006 following the rejection of a proposed tie-up with Renault-Nissan that he presented to the management board.



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Comments (5)

  1. By chris Posted: 4/28/2008 11:12am PDT

    well that will do a lot for ford's market image with investors. also, nearly 200 million dollars in funding is always a nice little kick in the pants.
     
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  2. By the 1% Posted: 4/29/2008 12:24am PDT

    He's buying common stock on the open market...Ford will not see 1 penny of that money....
     
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  3. By Donald Fales Posted: 5/20/2008 8:43pm PDT

    Is this avenue to a seat on Ford board or a game?
     
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  4. By chris Posted: 6/10/2008 1:57pm PDT

    Ok, i don't know much about stocks but 1 billion shares?
     
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  5. By Turkle Posted: 6/10/2008 10:56pm PDT

    Yes 1 Bil. shares of stock were offered for purchase by current common stock certificate owners. I could not find any numbers for how many actual open market common stock there are, but the quote of 1 Billion is correct.
     
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