Kerkorian’s Tracinda exits auto industry, divests rest of Ford stock
12/29/2008, 3:28 PM
By Andrew Ganz
Billionaire investor Kirk Kerkorian’s Tracinda Corporation has sold off its remaining shares of Ford Motor Company. Tracinda, under Kerkorian’s guidance, started amassing stock in Ford last Spring – at one point acquiring 6.5 percent of the company – but since early Fall, the group had begun selling off its shares in Ford at a rapid pace.
Tracinda spent $995 million on 141 shares of Ford at an average of $7.07 a share. The automaker’s stock is trading around $2.20 at press time.
Kerkorian, 91, is no stranger to the automotive industry. He owned nearly 10 percent of General Motors at one point and he unsuccessfully tried to buy Chrysler LLC.
It is unclear what led Kerkorian to sell off his share of Ford so soon after purchasing it – and at such a loss. Some reports early on indicated there was concern within the Ford family about Kerkorian’s investment being a threat to take control of the family business, but many analysts also saw his investment as an endorsement of the company’s strategies and of leader Alan Mulally.
12/29, 3:30 PM
posted by:
AnonymousCoward
Another so called “expert” having no clue about where the market is heading…
12/29, 3:45 PM
posted by:
HoosierHero
Yep. I’m actually buying Ford right now for speculation. They have some great products coming up. I just hope they can position them well and hit their price points!
12/29, 4:22 PM
posted by:
Borat
On a positive note the guys will have a great tax write off for 2008
12/29, 5:06 PM
posted by:
yarddog82abn
Kerkorian is 91, WOW…. could it be that the old is losing it?…
12/29, 6:08 PM
posted by:
Mutant@DCX
$600 million dollar loss for Kirk Kerkorian from April to December on Ford stock. That leaves him with 18 biillon in change.
That’s alot of coin to throw away, even when your just f******* around with the auto industry for s***** and giggles
12/29, 6:25 PM
posted by:
johnnycanuck
He just needed some spare change for a nut tuck.
12/29, 9:04 PM
posted by:
1c3d0g
Thank Jesus. It’s about time the old bastard gave it up. You can’t buy the entire auto industry, pops.
12/30, 10:20 AM
posted by:
mulletmaster
Based on the below math stated in the article dude paid a million dollar per share premium over market value?
“Tracinda spent $995 million on 141 shares of Ford at an average of $7.07 a share”
12/30, 11:21 AM
posted by:
Z06ified
Long term, I think it was a mistake for him to sell the Ford stock. They’ll come around and perform well within 2 years.
Than again, when you’re 91, what difference does it make?
12/30, 12:46 PM
posted by:
RaineMan
He just wanted a huge tax credit on this year’s return.