Kirk Kerkorian sells off 12 million GM shares
General Motors apparently no longer gives Kirk Kerkorian any good impression as the Billionaire investor decided to sell almost a fifth of his 9.9 percent stake in the company. Apparently, the value of the stocks have lost around a third of their value for this investor. As per reports in the market, the third largest stockholder in the worldâ€™s leading automobile manufacturer sold around 12 million GM shares on Dec. 15 and Dec. 19.
This means, Kirk has around 7.8 percent stake in the Detroit-based automaker. This was confirmed by his company Tracinda Corp. which reported it in a filing with the U.S. Securities and Exchange Commission. Apparently, Kerkorian had spent around $1.7 billion building his GM interest from April to October.
That investment helped the companyâ€™s stock go up by the most in the last couple of decades. However, the performance of the company failed to keep up with these prices and since then GM shares have lost half their value this year. Market analysts believe that Kirk seems to have lost faith in the company and now plans to minimize the losses on his stocks in the company.
General Motors is struggling to manage their business in their domestic markets and have planned big job cuts and plant closures. The company has suffered massively due to increasing fuel prices and competition from the Japanese automakers like Honda and Toyota.