Kirk Kerkorian Sells Ford Shares

Robert Farago
by Robert Farago
kirk kerkorian sells ford shares

Automotive News [sub] reports that billionaire investor Kirk Kerkorian has sold part of his 6.5 percent stake in Ford Motor Co. and could sell the rest before this blog hits the net. This according to spokesfolk for Kerkorian’s investment “vehicle” Tracinda Corp. “Tracinda, which has invested about $1 billion in Ford, said in regulatory filings it sold 7.3 million Ford shares on Monday in the open market for an average price of $2.43 per share. Tracinda intends to further reduce its holdings, including the possible sale of all of its remaining 133.5 million shares, or about a 6.09 percent stake, depending on market conditions and available sales prices.” Hang on; is this the same Captain Kirk who offered a cash infusion to FoMoCo in June? The same Lion of Las Vegas who, according to last Friday’s Bloomberg report, “pledged another 50 million MGM shares to back the $600 million Bank of America Corp. credit line he used to buy into the second-largest U.S. automaker?” Yup. There’s at least one analyst and an investor with a massive egg on their respective faces…

The pledging of additional MGM shares “indicates Tracinda’s desire to hold on to its Ford investment in the face of a potential margin call,” said analyst Brian Johnson at Barclays Capital in Chicago, before the weekend. “I would be concerned if he got out.” Bernie McGinn, of McGinn Investment Management in Alexandria, Virginia (which owns some 325k Ford shares) previously pronounced. ‘I’m hoping to see Kerkorian not flush his Ford position. It’s a continued vote of confidence.'”

Does this mean KK thinks Ford’s doomed? “Tracinda Corporation… sees unique value in the gaming and hospitality and oil and gas industries and has, therefore, decided to reallocate its resources and to focus on those industries.” So, yes.

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2 of 13 comments
  • Rpol35 Rpol35 on Oct 21, 2008

    This jacka$$ needs to see Warren Buffet for "Investments 101", you're supposed to buy low & sell high, not buy low and sell lower!

  • on Oct 21, 2008

    Smart man (but stupid to buy them in the first place). Ford is a sinking is only a matter of time before they are fully underwater.

  • Zerocred So many great drives:Dalton Hwy from Fairbanks to the Arctic Circle.Alaska Marine Highway from Bellingham WA to Skagway AK. it was a multi-day ferry ride so I didn’t actually drive it, but I did take my truck.Icefields Parkway from Jasper AB to Lake Louise AB, CA.I-70 and Hwy 50 from Denver to Sacramento.Hwy 395 on the east side of the Sierras.
  • Aidian Holder I'm not interested in buying anything from a company that deliberately targets all their production in crappy union-busting states. Ford decided to build their EV manufaturing in Tennessee. The company built it there because of an anti-union legal environment. I won't buy another Ford because of that. I've owned four Fords to date -- three of them pickups. I'm shopping for a new one. It won't be a Ford Lightning. If you care about your fellow workers, you won't buy one either.
  • Denis Jeep have other cars?!?
  • Darren Mertz In 2000, after reading the glowing reviews from c/d in 1998, I decided that was the car for me (yep, it took me 2 years to make up my mind). I found a 1999 with 24k on the clock at a local Volvo dealership. I think the salesman was more impressed with it than I was. It was everything I had hoped for. Comfortable, stylish, roomy, refined, efficient, flexible, ... I can't think of more superlatives right now but there are likely more. I had that car until just last year at this time. A red light runner t-boned me and my partner who was in the passenger seat. The cops estimate the other driver hit us at about 50 mph - on a city street. My partner wasn't visibly injured (when the seat air bag went off it shoved him out of the way of the intruding car) but his hip was rather tweaked. My car, though, was gone. I cried like a baby when they towed it away. I ruminated for months trying to decide how to replace it. Luckily, we had my 1998 SAAB 9000 as a spare car to use. I decided early on that there would be no new car considered. I loathe touch screens. I'm also not a fan of climate control. Months went by. I decided to keep looking for another B5 Passat. As the author wrote, the B5.5 just looked 'over done'. October this past year I found my Cinderella slipper - an early 2001. Same silver color. Same black leather interior. Same 1.8T engine. Same 5 speed manual transmission. I was happier than a pig in sh!t. But a little sad also. I had replaced my baby. But life goes on. I drive it every day to work which takes me over some rather twisty freeway ramps. I love the light snarel as I charge up some steep hills on my way home. So, I'm a dyed-in-the-wool Passat guy.
  • Paul Mezhir As awful as the styling was on these cars, they were beautifully assembled and extremely well finished for the day. The doors closed solidly, the ride was extremely quiet and the absence of squeaks and rattles was commendable. As for styling? Everything's beautiful in it's own way.....except for the VI's proportions were just odd: the passenger compartment and wheelbase seemed to be way too short, especially compared to the VI sedan. Even the short-lived Town Coupe had much better proportions. None of the fox-body Lincolns could compare to the beautiful proportions of the Mark was the epitome of long, low, sleek and elegant. The proportions were just about perfect from every angle.