Click the Pic J
I'll be keeping an eye on this........
Thanks for posting.
Posted on 01/26/2006 7:45:56 AM PST by apackof2
DETROIT Jan 26, 2006 — Billionaire investor Kirk Kerkorian is acquiring 12 million shares of General Motors Corp. stock, matching the number of shares he sold in December, a federal regulatory filing showed on Wednesday.
Kerkorian's private equity firm, Tracinda Corp., bought 5 million shares of GM stock on Monday for an average purchase price of $21.40, or approximately $107 million, it said in a filing with the Securities and Exchange Commission. On Tuesday, Tracinda agreed to purchase an additional 7 million GM shares in a private transaction for $22.25 per share, or approximately $155.8 million.
Those purchases would boost Kerkorian's stake in the world's largest automaker to 9.9 percent, the same as it was before Beverly Hills, Calif.-based Tracinda sold 12 million shares in December.
Tracinda said at the time that it sold the shares so that it could end its fiscal year with a capital loss, making it eligible for certain federal and California income tax breaks. Kerkorian lost $109 million on the 12 million shares he sold in December.
But Tracinda left open the possibility of reacquiring shares, and it waited only a short time after so-called wash rules lapsed. Federal tax rules prohibit a taxpayer from claiming a loss on the sale of stock if replacement shares are acquired within 30 days.
GM's shares fell to a 23-year low following Kerkorian's sale in December. The Detroit-based automaker has been struggling with declining U.S. sales and rising health care and materials costs. GM lost nearly $4 billion in the first nine months of last year.
GM was scheduled to report its fourth-quarter and full-year results for 2005 on Thursday morning.
Kerkorian has lost approximately $350 million in the total value of his 56 million GM shares since he began buying up shares at an average price of $30.10 last spring. His latest move may indicate he believes GM is listening to his ideas for improving the company. In a speech to Wall Street analysts this month, Kerkorian's top aide Jerome York called on GM to cut its annual dividend in half and set profitability goals and a timetable for achieving them.
York said Kerkorian was interested in buying more GM shares and was optimistic about its recovery efforts, but he said it was time for GM to get into a "crisis mode."
GM Chairman and CEO Rick Wagoner has repeatedly said GM has a clear recovery plan, including a restructuring that will cut 30,000 jobs and close 12 facilities by 2008. He also said GM's board must decide whether to cut the dividend. GM pays $2 per share annually in dividends.
In trading Wednesday on the New York Stock Exchange, GM shares rose 80 cents, or 3 percent, to $23.85. Kerkorian's SEC filing was released after the markets closed, and the shares rose an additional 15 cents in after-hour trading.
I also did a search everyway you can and came up with nothing so....
Kerkorian wants to take over GM, spin off GMAC and then kill/sell the highly-unprofitable car biz. Don't blame him - that might be the only way to save the car company.
Wagoner is lying - they *don't* have a plan. Or if they do, it *really* sucks.
Click the Pic J
I'll be keeping an eye on this........
Thanks for posting.
Obviously or GM wouldn't be where it is right now
As a GM employee I am interested to see if I have a retirement, Kerkorian will make the necessary hard cuts,but I may be one of the "losses"
See post #4......sigh
Check your FReepmail.
The hard reality is that it is shareholders not employees that call the shots - I hope it works out for you
I'll be ok, thanks
Kerkorian might as well give up on taking over GM, he is not "in the club".
When was the last time GM had a plan that worked?? They have had every chance in the world to make a go of it since the early 70's and have screwed the pooch every time with the exception of a few small flashe in the pan models.
IMHO, GM started their downhill slide back in the late 60's when the bean counters, instead of car guys, took over and started making multiple line cars look alike in order to save money. They have always had the attitude that the American buyer will take what they build whether the customer likes it or not.
LOL, nice try, but the Self Appointed Posting Police are still out there.....
Bingo!!
For a second, I thought it said "Kevorkian."
Its the "disclaimer" I haved decide to use until the search options improve
Does anyone here care about Kerkorian is getting his tax benefits courtesy of the rest of us taxpayers? I wish I could move millions around and be subsidized by everyone else.
Kerkorian isn't interested in running or even parting out GM. He's just out to make some money churning stocks.
I was wondering what is keeping GM shares afloat.
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