Kerkorian buys into Ford’s revival story, picks up 4.7%
Kirk Kerkorian, the billionaire investor who tried to overhaul General Motors three years ago, said he has bought a 4.7% stake in Ford Motor and plans to buy more.
By Bloomberg |
SOUTHFIELD, MICHIGAN: Kirk Kerkorian, the billionaire investor who tried to overhaul General Motors three years ago, said he has bought a 4.7% stake in Ford Motor and plans to buy more.
Kerkorian holds 100 million shares in the No 2 US automaker, according to a statement on Monday from his Tracinda. Tracinda intends to make a tender offer for an additional 20 million shares at $8.50, a 13.3% premium over the $7.50 closing price on April 25. Kerkorian���s company bought the initial 100 million shares at an average price of about $6.91 per share.
Kerkorian���s investment company has been following Ford ���closely��� since the company released its fourth quarter 2007 results and the progress ���indicated that Ford���s management was starting to achieve highly meaningful traction in its turnaround efforts,��� the statement said.
���Last week this was reinforced by Ford���s first quarter 2008 results, achieved despite the difficult US economic environment,��� Tracinda said in the statement. ���Tracinda believes that Ford management under the leadership of chief executive officer Alan Mulally will continue to show significant improvements in its results going forward.���
The automaker reported a $100 million first-quarter profit last week. Ford rose 7.3% to $8.05 a share at 7:27 am, before regular New York Stock Exchange composite trading.
���We welcome confidence in Ford and the progress we are making on our transformation plan,��� Mulally and chairman William Clay Ford Jr said in an e-mailed statement.
Kerkorian later pressured GM to put York on the automaker���s board. Kerkorian then urged General Motors CEO Rick Wagoner to seek an alliance with Carlos Ghosn���s Renault and Nissan Motor. York quit the board and Kerkorian later sold his GM stock when Wagoner decided to remain independent. Tracinda spokesman Tom Johnson said the company had no comment beyond the statement.
The shares had their biggest gain since 2002 on April 24, rising 12% after Ford defied analysts��� forecasts for a loss by posting the $100 million profit. They fell 11% a day later, to $7.50, after analysts at three securities firms said investors may cool on a stock that had been rising since mid-March.
Kerkorian holds 100 million shares in the No 2 US automaker, according to a statement on Monday from his Tracinda. Tracinda intends to make a tender offer for an additional 20 million shares at $8.50, a 13.3% premium over the $7.50 closing price on April 25. Kerkorian���s company bought the initial 100 million shares at an average price of about $6.91 per share.
Kerkorian���s investment company has been following Ford ���closely��� since the company released its fourth quarter 2007 results and the progress ���indicated that Ford���s management was starting to achieve highly meaningful traction in its turnaround efforts,��� the statement said.
���Last week this was reinforced by Ford���s first quarter 2008 results, achieved despite the difficult US economic environment,��� Tracinda said in the statement. ���Tracinda believes that Ford management under the leadership of chief executive officer Alan Mulally will continue to show significant improvements in its results going forward.���
The automaker reported a $100 million first-quarter profit last week. Ford rose 7.3% to $8.05 a share at 7:27 am, before regular New York Stock Exchange composite trading.
���We welcome confidence in Ford and the progress we are making on our transformation plan,��� Mulally and chairman William Clay Ford Jr said in an e-mailed statement.
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Monday���s announcement marks Kerkorian���s third major investment in a US car company. Kerkorian, 90, made an unsuccessful takeover bid for Chrysler in 1995. In May 2005 he disclosed his initial stake in GM, later becoming the biggest individual shareholder in the world���s largest automaker.Kerkorian later pressured GM to put York on the automaker���s board. Kerkorian then urged General Motors CEO Rick Wagoner to seek an alliance with Carlos Ghosn���s Renault and Nissan Motor. York quit the board and Kerkorian later sold his GM stock when Wagoner decided to remain independent. Tracinda spokesman Tom Johnson said the company had no comment beyond the statement.
The shares had their biggest gain since 2002 on April 24, rising 12% after Ford defied analysts��� forecasts for a loss by posting the $100 million profit. They fell 11% a day later, to $7.50, after analysts at three securities firms said investors may cool on a stock that had been rising since mid-March.
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