Tracinda Corporation, wholly owned by Kirk Kerkorian, announced on Monday it plans to acquire 20 million common shares of Ford Motor Company’s stock. At $8.50 per share, the $17 billion offer is 13.3 percent higher than Ford’s stock exchange price of $7.50 per share on Friday’s stock market close. Kerkorian’s group believes Ford’s turnaround plan, head by CEO Alan Mulally, is succeeding, as it’s been tracking the automaker’s progress since late last year. Last week, Ford announced a net profit in the first quarter of 2008.
Tracinda has been acquiring Ford stock since April 2, and if its latest offer is approved, it would own 120 million shares of Ford common stock, or about 5.6 percent of outstanding shares.
“We welcome confidence in Ford and the progress we are making on our transformation plan,” Mulally responded to the offer. “The Ford team remains focused on executing our plan to transform Ford into a lean global enterprise delivering profitable growth for all.”
This isn’t the first time the billionaire was linked to a deal involving a U.S.-based automaker. Also, back in 2006, Kerkorian sold a 9.9 percent stake in General Motors.
