Kirk Kerkorian is now punishing General Motors for refusing to listen to him and to merge with Renault and it is reported in the Wall Street Journal that he has sold all 28m of his remaining shares in a deal worth around $800m. It is reported that the shares were sold to the Bank of America. The billioniare previously owned 9.9% of the company. GM shares dropped to $29.23 after the news leaked out. The decision to sell came after GM decided against joining an alliance with Renault and Nissan, which Kerkorian wanted to see happen. The company thinks that it can survive without outside assistance and has been cutting production and reducing costs but it still has enormous pension and healthcare liabilities that it must pay in the years ahead. GM has been losing money at a frightening rate in recent years, faced by its huge costs and by competition from Toyota, Honda and Nissan in the key US markets.
http://www.grandprix.com/ns/ns17822.html
As little as I know about things of Wall Street, I cannot ignore my gut instinct that Mr. Kerkorian's departure is a good thing for the General. From the start, as I understand it, Kirk was never in it for the betterment of GM (i.e., the building of better, more desirable cars). He was, unapologetically, in it for the bux. Can't fault him for that (who among us is not in business for money?), but having a non-carguy with that kind of control over a car company was a bit disconcerting for those of us who wish the General a return to the glory days.
r
My hunch is he's one of the rumored suitors who want to buy Chrysler back from the Germans.
Quote from: KarnUtz on December 02, 2006, 03:04:44 AM
My hunch is he's one of the rumored suitors who want to buy Chrysler back from the Germans.
That would be tragic for Chrysler.
Dan