22.06.2008KERKORIAN BUYS MORE SHARES OF FORD
By Bill Vlasic
Published: June 19, 2008
DETROIT: Just two days after a meeting with top executives at Ford Motor, the financier Kirk Kerkorian disclosed Thursday that he had increased his stake in the automaker by another 20 million shares.
Kerkorian's Tracinda Corp. said in a regulatory filing that it had increased its stake in Ford to 6.49 percent from about 5.6 percent.
Tracinda now owns 140.8 million shares of Ford, putting Kerkorian's investment in the company at an estimated $1 billion.
The move by Kerkorian, 91, comes after a meeting Tuesday in Las Vegas with Ford's executive chairman, William Ford Jr., and its chief executive, Alan Mulally.
Ford Motor described the 90-minute meeting as positive, and said it welcomed the confidence that Kerkorian had shown in its turnaround efforts.
In the filing Thursday, Tracinda reiterated earlier statements that it might "from time to time" propose business strategies for Ford.
Moreover, Tracinda said it had explored the possible infusion of capital into Ford to aid in its turnaround.
While no details were provided, a capital infusion could be offered to the automaker in exchange for preferred stock that could increase Kerkorian's influence.
There was no immediate comment from the automaker.
Kerkorian began building his stake in Ford in April, shortly before the automaker announced a surprising first-quarter profit after losing a combined $15.3 billion in 2006 and 2007. But the automaker has stumbled since then from falling sales of its big pickups and sport utility vehicles. In May, Mulally retreated from his pledge that Ford would post a full-year profit by 2009.
The setbacks have not deterred Kerkorian. After acquiring 100 million Ford shares on the open market, he completed a tender offer last week for another 20 million shares and now has added an additional 20 million shares.
Source: International Herald Tribune at http://www.iht.com/articles/2008/06/19/business/ford.php
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