Billionaire Investor Dumps Ford Stock

Kirk Kerkorian, Whose Company Once Owned 10 percent Of GM And Offered To Buy Chrysler, Abandons Ford

(AP)  Billionaire investor Kirk Kerkorian has sold his remaining 5 percent stake in Ford Motor Co., according to his investment company, Tracinda Corp.

Kerkorian, 91, has unloaded his last 107 million shares - a 4.89 percent stake - ending his investment with the troubled Dearborn, Mich., automaker whose turnaround efforts he expressed confidence in earlier this year.

Kerkorian's stake in Ford peaked in June, when he owned 6.49 percent after paying $1 billion at an average share price of $7.10. He began scaling back his ownership in October, selling shares at an average price of $2.43 each, according to regulatory filings. That marked a loss of about two-thirds of his investment, or roughly $650 million.

Ford spokesman Mark Truby declined to comment on Kerkorian's withdrawal and said the company "remains completely focused on executing our transformation plan."

Kerkorian first said in April he would raise his existing stake in Ford to 5.6 percent, offering a 13.3 percent premium over the share's existing price. The offer came just days after the automaker posted a surprise $100 million first-quarter profit.

Kerkorian continued increasing his stake in June and met with Ford Chief Executive Alan Mulally and Executive Chairman Bill Ford to discuss the company's turnaround plan.

But the situation for the auto industry has rapidly deteriorated since then. Last month, Ford posted a loss of $129 million in the third quarter. Among Detroit's automakers, the company is considered the best positioned to weather the industry slump and has said it does not need federal loans to survive. Nonetheless, its sales have slumped and its stock has withered.

Shares of Ford closed down 7 cents, or 3.1 percent, to $2.22 on Monday and have fallen 66 percent so far this year.

"I just look at it as a negative indicator for the auto industry as a whole," said Stephen Spivey, auto analyst for the consulting firm Frost & Sullivan. "The smart money is pulling out of this industry and you've got the taxpayer being the only significant investor left in these companies"

Kerkorian's Ford venture was the latest effort by the investor to build a significant investment in a U.S.-based automotive company.

A year ago, Tracinda made an unsuccessful $4.5 billion cash offer for Chrysler. It dumped the last block of what once was a nearly 10 percent share of General Motors Corp in 2006.

Kerkorian won a seat on GM's board for Jerome York, one of his advisers, and he pushed for an alliance between GM, Nissan Motor Co. and Renault SA. GM's board voted to explore the possibility, but after three months of discussion, the idea was scrapped.

Tracinda, which is named after Kerkorian's daughters, Tracy and Linda, holds the majority stake in casino and hotel operator MGM Mirage Inc.

[antoniof123]

Thank you Republicans for all you have done to our country.

But hey you got what you wanted didn''t you.

[brannigon]

Oh oh! Ok everybody, quickly! Jump ship!!! Follow the leader! Everybody panic!!!

[petro49l]

William Clay Ford is a babbling incompetent. He should sell his shares of the automobile company. Ford pleased O.P.E.C. with the gas-guzzling SUV, HV, LPV, and RV. The corporation must be operated by Investors who make a fuel-efficient, ecologically-safe, and cheap car.

[rushlimpdrug]

And he knows what he is doing?

[pepperwood2]

Smart move! When he fills out his 2008 tax returns He like Hillary can expect to get a pretty hefty return on his losses for 2008.

[janefondu]

HE''S A DUMB OLD ***

[billpl-2009]

at 91, long term investments don''t make much sense

[whitemale08]

What an idiot.

However it''s the levereage-derivatives-swaps that will bankrupt this clown and take out another fragil leg in the financial system.

When these payasos blow-up they take alot of pieces of the financial system with them.

I''m glad he''s gone anyways; he''s just another financial parasite that likes to suck the blood out ''middle-class'' wages.

[of11of]

wtg kirk
good move