Tuesday, April 29, 2008
Ford gets Kerkorian investment
Billionaire investor acquires stake in blue oval
American billionaire financier Kirk Kerkorian has acquired a 4.7 per cent stake in Ford and plans to purchase 20 million additional shares for $170m (£86m).
Upon completion of this purchase, Kerkorian's Tracinda Corporation would own 120 million shares of Ford common stock, amounting to 5.6 per cent of the total.
The announcement of the completed acquisition sent the American carmaker's shares up 8 per cent in pre-market trading.
Kerkorian's Ford purchase has come following failed efforts to buy Chrysler last year. In November 2006 he cut his stake in General Motors from 10 per cent to just over 7 per cent having failed to force the carmaker into an alliance with Renault Nissan.
It also comes after Ford's unexpectedly strong first quarter results announced last week, achieved despite the difficult economic situation in the US.
While there has been no indication that Kerkorian has met with Ford management or its board, Tracinda has indicated its support of the carmaker's current strategy to cut its American capacity and globalise operations.
DATED: 29.04.08
FEED: MT
American billionaire financier Kirk Kerkorian has acquired a 4.7 per cent stake in Ford and plans to purchase 20 million additional shares for $170m (£86m).
Upon completion of this purchase, Kerkorian's Tracinda Corporation would own 120 million shares of Ford common stock, amounting to 5.6 per cent of the total.
The announcement of the completed acquisition sent the American carmaker's shares up 8 per cent in pre-market trading.
Kerkorian's Ford purchase has come following failed efforts to buy Chrysler last year. In November 2006 he cut his stake in General Motors from 10 per cent to just over 7 per cent having failed to force the carmaker into an alliance with Renault Nissan.
It also comes after Ford's unexpectedly strong first quarter results announced last week, achieved despite the difficult economic situation in the US.
While there has been no indication that Kerkorian has met with Ford management or its board, Tracinda has indicated its support of the carmaker's current strategy to cut its American capacity and globalise operations.
DATED: 29.04.08
FEED: MT
