By on December 29, 2008

According to Automotive News [sub], investor Kirk Kerkorian’s Tracinda Corp sold off its 133.5m share position in the Ford Motor Company. Tracinda first revealed that it would divest its Ford holdings in regulatory documents filed in October. It has now confirmed the complete sale. Tracinda spent over $1b on Ford stake beginning in April, paying an average of $7.10 per share. At the time of writing, Ford is selling at $2.22 per share and falling. Kerkorian’s losses in Ford are estimated at over $660m. Still, the ninety-year-old money man can take the hit. Not only because he’s close enough to the end of his life to not give a dman, but also because Forbes rates “the Lion of Las Vegas'” current net worth at a $16b. Ford was the third Detroit automaker to attract Kerkorian’s attention; the sale marks the end of his tortured involvement the major domestic auto OEMs. Of course, when they file, Kirk or his minions might go bargain hunting…

Get the latest TTAC e-Newsletter!


6 Comments on “Captain Kirk Beams Down, Dumps Ford Stock...”

  • avatar

    Given his recent track record investing in auto companies, Kerkorian might want to look into Tesla. It’s a ground floor opportunity!

  • avatar

    Let’s see if he can work his magic with Toyota.

  • avatar

    Call me crazy but I don’t think K.K. is making the right move.

    I believe Ford is going to survive and make it through and I’m putting my money where my mouth is- I have bought Ford bonds.

    It’s a risky bet but in my view a good one, since I paid 15% of face value.

  • avatar

    Probably needs money to prop up his Vegas ventures. Vegas is being hit hard by the downturn.

  • avatar
    John Horner

    Tis the season to take your losses so that Uncle Sam can share the pain. Income tax receipts at the state and federal level are going to take a massive hit in the first half of 2009 as the consequences of this melt down work their way through to tax returns. The downdraft hitting big earner’s annual bonuses is also going to be a big problem. Not long ago the governor of New York State noted that Goldman Sachs bonus haircut would mean the loss of $168m of income taxes to New York alone.

  • avatar

    The sale of his Ford stake is almost entirely to support his sagging Vegas ventures… He bought the Ford shares on leverage from the MGM shares. But those shares have since plummeted even further than Ford’s shares. Kind of a bad situation to be in, but what has that taught us about over-leveraging ourselves with the hope of making a quick buck?

Read all comments

Back to TopLeave a Reply

You must be logged in to post a comment.

Recent Comments

  • teddyc73: Funny thing, if I was shopping for a vehicle in this class neither the Toyota or the Koreans would be on my...
  • teddyc73: While Shaniqua and Mo’nique come to blows at Denny’s because, well, for no reason at all.
  • Scoutdude: You don’t want to use that wrap stuff on your calipers, it says it is for wheels and accessories and...
  • Scoutdude: Back when we used to turn rotors instead of replace them it wasn’t uncommon to find “Jesus...
  • Peter Gazis: FreedMike The Pilot has more space. Becky wins!

New Car Research

Get a Free Dealer Quote

Who We Are

  • Matthew Guy
  • Timothy Cain
  • Adam Tonge
  • Bozi Tatarevic
  • Chris Tonn
  • Corey Lewis
  • Mark Baruth
  • Ronnie Schreiber