Tracinda Corp. still committed to Ford, despite 10 percent share drop
05/30/2008, 10:36 AM
By paulee
The Tracinda Corporation’s recent bid to buy 20 million shares of Ford stock is yet to be approved by Ford. The $170 million dollar offer included a clause that would allow Tracinda to back out of the deal if Ford’s shares fell 10 percent, which already happened since the initial announcement on May 9. As a result, Tracinda dropped the clause, but remains committed to increase its ownership in Ford to 5.5 percent.
Back on May 9, the offer to buy 20 million shares at $8.50 per represented just a $0.30 premium over the actual value of $8.30, but since then, Ford’s stock fell by 18 percent, closing at $6.71 on Thursday. Billionaire investor Kirk Kerkorian’s Tracinda remains committed to the offer, which is due to expire on June 9, according to Automotive News. Ford, meantime, is neutral about the offer.
Last week, Ford announced it would push back its profitability turnaround plans while cutting production due to the poor market.
Tracinda pointed out a waiting period on the tender offer expired on May 23.
05/30, 10:45 AM
posted by:
xyunya
I love Kerkorian. He lost money on Chrysler, GM but still in the auto game. With GM he made pile of money for me. It was no loss proposition. The stock is at 6.75 with yearly target of 6.86.
05/30, 10:47 AM
posted by:
NoNameDenton1
You would think at his age Captain Kirk Kerkorian would retire or something, but no, he is still meddling.
05/30, 11:26 AM
posted by:
johnnycanuck
So what’s your take, xyunya? Lot’s of positive spin on FoMoCo these days. Is this a good time to buy and hold?