Billionaire Kerkorian buys shares of loss-making General Motors

Billionaire Kerkorian buys shares of loss-making General Motors Billionaire kirk Kerkorian was put forward on 9 may an offer to buy 28 million shares of General Motors, the Associated Press reports. Thus, it will double its share in the company - despite the recent downgrade of GM to "speculative" status.Investment company of Kerkorian Tracinda Corporation offers around 870 million, or 31 dollars per share. If you can buy all 28 million shares, Kerkorian will own a total of 50 million shares - 8,84% of all shares of the company. Offer period expires June 7, the day of the annual meeting of shareholders of the company. Tracinda is already the owner of a large share of the casino operator and hotels MGM Mirage Inc.News of the intention of Kerkorian significantly increase its share in the company began to circulate in early may, which allowed shares of General Motors grow by 18 percent. Soon, however, the rating Agency Standard&Poor's announced the downgrade, which had a negative effect on the stock price. After the official announcement of the purchase of shares increased by almost 2 percent, and their price (31,33 dollar) was higher than the offer price.In his statement, Tracinda persistently repeats, which is acquiring the shares for investment and not to buy influence over the business's largest automaker. However, Kerkorian has never been a passive investor. 87-year-old billionaire is now engaged in protracted litigation regarding the past 7 years ago, the merger of Daimler-Benz and Chrysler, which formed DaimlerChrysler AG. Kerkorian, who lost about $ 2 billion in the merger, was a major shareholder in Chrysler."If he doesn't get the money back, he becomes irritable," said Gerald Meyers, former Chairman of American Motors Corporation, Kerkorian. He added that "for GM is unlikely to be useful to the attention of Kerkorian". According to Myers, the downgrade could not influence the decision of Kerkorian, as he weighed all the options.Tracinda is not mentioned in his statement on the downgrade. The proposal of Kerkorian can make some recovery in trading in the shares of General Motors, which in April fell to a 10-year low due to reports of large losses in the first quarter.11.05.2005.

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