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Kerkorian Buys Back 12 Million GM Shares
ABC News ^ | 1.26.06 | DEE-ANN DURBIN AP Auto Writer

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.


TOPICS: Business/Economy; Culture/Society; News/Current Events; US: Michigan
KEYWORDS: automakers; billionaires; corp; generalmtors; gm; kerkorian; shares; stock; stocks; tracinda
FOR DISCUSSION ONLY

I also did a search everyway you can and came up with nothing so....

1 posted on 01/26/2006 7:46:04 AM PST by apackof2
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To: apackof2

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.


2 posted on 01/26/2006 7:48:51 AM PST by Spktyr (Overwhelmingly superior firepower and the willingness to use it is the only proven peace solution.)
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To: apackof2
Verrrry Interesting!
Click the Pic J

I'll be keeping an eye on this........
Thanks for posting.

3 posted on 01/26/2006 7:50:01 AM PST by Fiddlstix (Tagline Repair Service. Let us fix those broken Taglines. Inquire within(Presented by TagLines R US))
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To: Spktyr
Wagoner is lying - they *don't* have a plan. Or if they do, it *really* sucks.

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"

4 posted on 01/26/2006 7:51:33 AM PST by apackof2 (You can stand me up at the gates of hell, I'll stand my ground and I won’t back down)
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To: Fiddlstix

See post #4......sigh


5 posted on 01/26/2006 7:52:12 AM PST by apackof2 (You can stand me up at the gates of hell, I'll stand my ground and I won’t back down)
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To: apackof2

Check your FReepmail.


6 posted on 01/26/2006 7:56:34 AM PST by Fiddlstix (Tagline Repair Service. Let us fix those broken Taglines. Inquire within(Presented by TagLines R US))
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To: apackof2

The hard reality is that it is shareholders not employees that call the shots - I hope it works out for you


7 posted on 01/26/2006 8:00:43 AM PST by kentj
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To: kentj
Oh I understand, if you are a shareholder you buy stock to MAKE money not loose it

I'll be ok, thanks

8 posted on 01/26/2006 8:07:38 AM PST by apackof2 (You can stand me up at the gates of hell, I'll stand my ground and I won’t back down)
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To: Spktyr

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.


9 posted on 01/26/2006 9:07:44 AM PST by biff
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To: apackof2
I also did a search everyway you can and came up with nothing so....

LOL, nice try, but the Self Appointed Posting Police are still out there.....

10 posted on 01/26/2006 9:17:06 AM PST by AxelPaulsenJr (Pray Daily For Our Troops and President Bush and the SAPPS)
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To: biff
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.

Bingo!!

11 posted on 01/26/2006 9:34:33 AM PST by apackof2 (You can stand me up at the gates of hell, I'll stand my ground and I won’t back down)
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To: apackof2

For a second, I thought it said "Kevorkian."


12 posted on 01/26/2006 9:35:03 AM PST by RockinRight (Attention RNC...we're the party of Reagan, not FDR...)
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To: AxelPaulsenJr
LOL, nice try, but the Self Appointed Posting Police are still out there.....

Its the "disclaimer" I haved decide to use until the search options improve

13 posted on 01/26/2006 9:43:10 AM PST by apackof2 (You can stand me up at the gates of hell, I'll stand my ground and I won’t back down)
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To: apackof2

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.


14 posted on 01/26/2006 10:13:57 AM PST by RichardW
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To: apackof2

Kerkorian isn't interested in running or even parting out GM. He's just out to make some money churning stocks.


15 posted on 02/01/2006 11:59:46 AM PST by SunkenCiv (In the long run, there is only the short run.)
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To: apackof2

I was wondering what is keeping GM shares afloat.


16 posted on 02/01/2006 12:03:24 PM PST by RightWhale (pas de lieu, Rhone que nous)
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