Advertisement
YOU ARE HERE: LAT HomeCollections

Kerkorian Caps GM Stock Offer

June 02, 2005|From Bloomberg News

Billionaire Kirk Kerkorian's Tracinda Corp. said Wednesday that it wouldn't increase its offer of $31 each for as many as 28 million shares of General Motors Corp., even as the stock traded above the proposed price.

Los Angeles-based Tracinda said it had gotten "repeated inquiries" about its plans. The offer began May 9 in an effort to bring Kerkorian's stake in the world's largest automaker to 50 million shares, or 8.8%, and will expire June 7 unless extended. Tracinda didn't say how many shares it had received.

GM shares have closed below $31 just three days since May 9. The day before Tracinda's plans became public May 4, the stock closed at $27.77. On Wednesday, the shares fell 14 cents to $31.39.

Tracinda, which has said it plans to be a "passive" investor, made its offer as GM Chief Executive Rick Wagoner tries to return automotive operations to profit after the company's $1.1-billion first-quarter loss.

Advertisement
Los Angeles Times Articles
|
|
|