Kerkorian boosts Ford stake to 5.6%
Billionaire Kirk Kerkorian has boosted his stake in Ford (F). Kerkorian’s Tracinda Corp. said Friday it bought 20 million Ford shares at $8.50 apiece, after shareholders tendered a total of 826 million shares into the firm’s above-market offer. Kerkorian said in April he would tender for the stock in a move aimed to boost his stake in the automaker, saying Ford was “starting to achieve highly meaningful traction in its turnaround efforts.” The latest stock buy, valued at $170 million, gives Kerkorian a 5.6% stake in Ford.
Since then, Ford shares have dropped sharply, as surging steel and oil prices and weakening consumer spending have forced the company to slash its production schedule and push back the date of its expected return to profitability. But Kerkorian said last month he would go through with the tender offer, in what was taken as another sign of confidence in CEO Alan Mulally’s leadership. The tender offer meant that other shareholders had a chance to get $8.50 for shares that closed Thursday at $6 - a bargain that, unsurprisingly, few investors decided to ignore.
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While Mr. Kerkorian has a penchant for modest American automobiles (as many luxury car owners may soon, more on that here..www.bloomberg.com/apps/news?pid=20601087&sid=aY6O8.EQ8Jpo&refer=home)
I find Ford’s deathbed conversion away from SUVs and towards fuel efficient vehicles hardly “meaningful traction”. Once again, too little too late.
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