Kerkorian cuts Ford stake; could sell all shares

Kerkorian cuts Ford stake; could sell all shares

DETROIT (Reuters) -- Billionaire investor Kirk Kerkorian sold part of
his 6.5 percent stake in Ford Motor Co. and could sell the rest of his
stake in the automaker, Kerkorian's investment vehicle Tracinda Corp.
said today.

The move comes after a more than 60 percent decline in Ford shares
since Kerkorian raised his stake to 6.5 percent in June and said he
was willing to support the automaker's turnaround with an infusion of
additional capital.

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, it said.

It has contacted an investment banking firm regarding the possible
sale of shares.

Kerkorian's offer of additional capital had been widely seen as a
boost to Ford at a time when the automaker and its Detroit-based
rivals face increasing scrutiny over their ability to ride out a sharp
downturn in U.S. auto sales.

The point of that post is flawed. No way did he "support the automaker's
turnaround with an infusion of additional capital!" He bought the stock
from other Ford stockholders in the market.

For Ford to benefit from a stock sale it would have had to be a new issue.
Even if he sells now the loss will not come out of Ford pocket but his. If
he decides to dump all of his stock he will simply lower the trade price.
At that point others will buy it up a bargain prices, but that will not
effect Fords balance sheet ether way.


"C. E. White" <cewhite3 DeleteThis @mindspring.com> wrote in message
news:gdkmlp$e8i$1@registered.motzarella.org...
> Kerkorian cuts Ford stake; could sell all shares
>
> DETROIT (Reuters) -- Billionaire investor Kirk Kerkorian sold part of his
> 6.5 percent stake in Ford Motor Co. and could sell the rest of his stake
> in the automaker, Kerkorian's investment vehicle Tracinda Corp. said
> today.
>
> The move comes after a more than 60 percent decline in Ford shares since
> Kerkorian raised his stake to 6.5 percent in June and said he was willing
> to support the automaker's turnaround with an infusion of additional
> capital.