Kirk Kerkorian increases stake in General Motors
General Motors seems to be getting back on track as the Billionaire investor Kirk Kerkorian has just increased his stake in the company. Kirk Kerkorian now holds around 9.9% of the companyâ€™s share compared to 7.8% earlier. This news also helped the worldâ€™s largest automaker GM to improve its stock value in the share market.
Kerkorian owned Tracinda Corporation acquired an additional 5 million shares on the open market on January 23. These shares were bought at an average price of $21.40 a share. The company also is under process of acquiring an additional 7 million shares in a private transaction expected to settle on January 27.
This information was revealed through a report, Tracinda filed with the U.S. Securities and Exchange Commission. Kerkorian recently lowered his share in the company after criticizing the policies of the company. General Motors is suffering huge losses in the American market with increased competition from the Japanese automakers. GM also recently announced massive job cuts and closure of loss making plants to get back to profitability in the coming years.
This latest news event indicates that Tracinda might be prepared to organize a fight for control of GM’s boardroom. Tracinda adviser Jerome York said in a statement: “The reality is we have a whole menu of options. We are continuously evaluating the situation regarding what is going on with GM. I don’t mean every two months or something, I mean on a day-by-day, week-by-week basis.”