By Leftlane Staff
Friday, Jun 30th, 2006 @ 2:02 pm

Update #2: GM has convened an emergency board meeting to discuss a proposal by shareholder Kirk Kerkorian to form an alliance between GM and Renault- Nissan , say two Automotive News sources close to the board. Original Post: Kirk Kerkorian — the billionaire investor who holds a 9.9 percent stake in General Motors — has formally suggested the struggling automaker form an alliance with Nissan and Renault. Kerkorian’s company, Tracinda, said in a letter to GM CEO Rick Wagoner that the partnership would “strengthen the competitive positions of all three companies.” There are even reports that Renault/Nissan are considering buying a significant stake in General Motors and including the American automaker in their alliance. GM shares subsequently rose $3.64 to $31.08 in New York Stock Exchange trading. Shortly thereafter, GM issued a statement regarding the idea: “General Motors has received no offer or proposal from Renault/Nissan with respect to its participating in the Renault/Nissan Alliance, as suggested in the 13-D Filing made today by the Tracinda Corporation. The Tracinda request will be taken under advisement by the GM Board of Directors. At this time, we have no further comment.”

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