Kirk Kerkorian May Lose $670 Million On Ford Gamble

We wondered if Kirk Kerkorian wasn't just a little mad when he bought a 5.5% stake in Ford after selling his GM stock and unsuccessfully attempting to buy Chrysler. News that he's now bailing on his investment has some estimating that Kerkorian, who owns the primary stake in MGM Grand, lost upwards of $670 million on his gamble. The math below the jump. More »

Ford Meets With Tracinda, Probably Asked Kerkorian Not To Hurt Them

The week after taking a 5.5% stake in Ford Motor Co., representatives of investment tycoon and corporate raider Kirk Kerkorian's Tracinda Corporation had a little chat with Ford CEO Alan Mulally and executive chairman Bill Ford to discuss [random speculation]. While the meeting was described by Ford representatives as cordial, Tracinda's spokespeople haven't said a word about it. We'll keep our ears to the grindstone on this one, but don't expect much more worth repeating anytime soon. Well, until Jerry York heads to Dearborn to roll some heads. [via Automotive News (sub. req.)]

Kirk Kerkorian: 5.5% Of Ford Or Another Shutout?

Some of you may remember that way back on May 9, Kirk Kerkorian, America's favorite nonagenarian billionaire, made a cash purchase offer for 20 million Ford shares at $8.50 apiece. Well, that offer expires today at 5 pm. If Ford accepts the offer, Kerkorian's Tracinda Corp would pay a premium to attain a 5.5% stake in the Blue Oval. If Ford declines the offer, they leave a whole bunch of cash on the table, but they get to send Kerkorian home with an 0-3 record in Motown. More »

Kirk Kerkorian: Mad Money Or Just Mad?

We got a call early this morning with someone telling us that Kirk Kerkorian and Tracinda had just moved to buy more of FoMoCo. Having endured a late night, we promptly fell back asleep. Upon waking up we had to run to the computer to double check that wasn't some sort of weird dream (like the one where Bob Lutz hunts us with a crossbow). Turns out it wasn't. When it is all over, Tracinda will own 120 million shares of Ford common stock. KirkKerk is putting up a price of $8.50, or 13.3% over Friday's closing price of $7.50. As we've mentioned, Tracinda has sort of a weird history with US automakers. More »

Autoextremist: KirkKerks Don't Change Their Spots

Sweet Peet weighs in on Kerkorian's overture to the union in his attempt to buy out Chrysler and ends up making a very salient point:

"Kerkorian is a hustler with a capital 'H' and that's about as far as his interest in the well-being of a reconstructed Chrysler Group goes. He and York are in it for the short-term play, and your first clue should have been the words, 'Long term, patient investing has been Tracinda's approach...'"

And at 89 years old, will Kerkorian live long enough to even see out a seven-year plan for the beleagured DCX unit's turnaround? – Davey G. Johnson More »

Chrysler Group Sales Speculation — Taken For A Ride II: Judgement Day

Everyone knows who Bill Vlasic is right? He's the Detroit News reporter who co-wrote the definitive account of the how Chrysler and Mercedes became the stilted and fubar married couple they are today. Vlasic and co-author Bradley A. Stertz's "Taken For A Ride" starts with an attempted takeover by a certain peppermint patty-flavored corporate raider...by the name of Kirk Kerkorian. So it's quite interesting for us that with Walter P. Chrysler's name-sake getting taken for a second ride in the past ten years, and with KirkKerk and Jerry York's Tracinda Corp. taking another shot at the company this afternoon, we would have received the following e-mail forwarded to us. It's from Kim Cowser at Harper-Collins soliciting Vlasic as the definitive speaker on the subject of the German-American hybrid. We wonder if he's getting any calls today. Full text of the e-mail after the jump. – Ray Wert More »

Breaking! Kirk Kerkorian's Tracinda Offers $4.5B To Purchase Chrysler

Hot off the wires:

Tracinda prepared to offer $4.5B to purchase Chrysler — Dow Jones (81.40 +0.83) Tracinda offer is contingent on a new labor agreement with the UAW. Tracinda is seeking exclusive rights for Chrysler due diligence, which Tracinda says it could complete in 60 days.

When the hell did it become the 90's again? Does this mean we'll see Iaccoca playing the field again? Well — it sure as hell beats building bicycles or whatever the hell he's been doing as of late. – Ray Wert More »

Breaking Bigger, Longer And Uncut! WSJ Reports Kirk Kerkorian Sells Entire Stake Of General Motors Stock

The dream is — according to the Wall Street Journal anyway — dead. The Journal's reporting that the man with the plan's sold not just half of his stock in the General as we reported earlier — but all of his stock in the biggest n' baddest automaker in the world. KirkKerk has left the building, and with him — all hope? No wait, what's that we hear — they've also finalized the GMAC sale? Hope may spring...you know...a little bit, or something. – Ray Wert More »

Breaking! Kerkorian Goes On A Selling Spree, Cuts Stake In GM Stock By Half

Looks like KirkKerk wants very little to do with the world's largest automaker — the corporate raider's company, Tracinda, is cutting it's shares again — and this time it's in half. Kerkorain's cutting his stake down to a paltry 4.95%, or 28 million shares — a level that will ensure he won't be able to do much more than raise his hand come time for the annual shareholder meeting. And I think that noise I can hear right now in the distance is the General's General — Rick Wagoner — giggling from atop the RenCen. – Ray Wert More »

Black Friday Comes Early For Kerkorian: Corporate Raider Cuts GM Holdings

First he tried to align the General with Renault-Nissan, next he said he wasn't going to be buying any more stock — worrying the General's brass that a proxy fight was in the works — and now he's decided the thought of a proxy battle's just not going to solve anything. The man with the big wad of cash just announced two days before the biggest shopping day of the year that a decent chunk of his shares will be up for sale as well. KirkKerk filed a regulatory whatever to tell the world he'll be selling 14 million shares of stock in the General — dropping his stake in the Detroit-based automaker from 9.9% to 7.4%. No coincidence we're assuming with the fact that his company, Tracinda, also announced plans to offer $55 a share in cash for 15 million shares of MGM Mirage Inc. — looks like somebody needed to pay for a little stock purchase. – Ray Wert More »

Taste The Excitement! Jerry York's Resignation Is Kirk Kerkorian's First Step In All-Out War Against The General?

Ok, we're still digesting this one but it seems that we shouldn't be worried about who'll be bringing the fire to shove under Rick's backside after GM Board member Jerry "Peppermint Patty" York announced his resignation earlier today. The fire's still there — and it's in the form of a potential hostile takeover. According to long-tie industry journalist Bill Vlasic at the Detroit News, the "resignation by York is a clear sign Kerkorian, who owns 9.9 percent of the company, is gearing up for an all-out attack on GM Chairman Rick Wagoner and the automaker's board of directors." Does anyone know if a proxy fight's like a slap fight? Because if it is, this could get real entertaining, real quick. – Ray Wert More »

Breaking! Jerry York Resigns From GM Board Of Directors — Will He Take Fire With Him?

Automotive News is reporting what folks have been speculating about all week after the GM-Renault-Nissan talks were axed — Jerry York, the Kirk Kerkorian flunky and member of the GM board of directors, has resigned from the General's board, according to a filing today with the Securities and Exchange Commission. In addition, they're reporting Kirk Kerkorian saying he won't be buying any more GM stock. So here's the question — since most folks seem to believe the only reason the turnaround effort has been in any way a success (whatever your definition of that is — at least they've stopped losing $9 billion) was that the threat of a KirkKerk corporate raid was putting the fear of God into the folks at the RenCen. if KirkKerk's no longer looking to put the General in play, what's going to be the fire up Rick Wagoner's ass that'll keep his turnaround plan from going around in circles? – Ray Wert More »

Breaking! Kirk Kerkorian's Got A Stomach For More GM

KirkKerk, like the Mona Lisa, has a dangerous smile when he's thinking about his beloved loved despised General Motors. Guess he and his hetero life partner, Tracinda, are thinking about what they'll do once they've snagged off of the street up to 12 million more shares of the company, which would give it more than a 10% stake, as the world's largest automaker continues discussions with Carlos Ghosn's Renault and Nissan about a three-way. The move by the world's most auto-tastic corporate raider comes just after Wagoner met with Carlos Ghosn, the head of Renault and Nissan, in Paris on Wednesday and agreed to continue talking about the alliance even though the talks are running into difficulties. What's our take? We're still of the opinion that Kirk wants to keep the pressure on the General and more importantly, on Slick Rick and his colonels participating in talks. We'll keep watching the story...despite the fact there's so many more fun things to be checking out here in Paris. More »

Breaking! Ford To Go All Meta And Sell Pieces Of Self To Former Self Nasser?

Bloomberg News's reporting FoMoCo's in talks to sell some of its luxe brands from its Premier Automotive Group (NAMBLA) with a group led by none other than former Ford Chief Executive Officer Jacques Nasser. This is the same guy who FoMoCo's board fired just five years ago after the whole Firestone tires thing — and the same CEO who created the PAG in the first place — a group including Euro brands Jaguar, Land Rover and Volvo. Although the deal being discussed doesn't involve Volvo, no one seems to know how far the talks have progressed. Which makes us ask the really important question — what the hell is with the automotive industry? We feel like... More »

Kerkorian Knows "Step 2"...For Tracinda!

It's always nice to be able to get your company and its investments in the black. Billionaire investor, financier and top GM shareholder, Kirk Kerkorian certainly knows how to make a profit (the key being, of course, a necessary understanding of Step 2) — at least for Tracinda Corporation, his child holding company and its 56 million shares of General Motors stock. Since pushing this whole GM-Renault-Nissan thing on June 30th, GM's stock's risen 7.9% — part of a total 53% gain on the year. That means KirkKerk's Tracinda's net investment of $1.52 billion is now up to around $1.66 billion given GM's close of $29.62 on Wednesday on the NYSE. Not too shabby for a one year investment if you ask us — it pretty much blows our money market fund out of the water. Man, we gotta move our banking. More »

Kerkorian Warns What? The Times' Micki Maynard Interviews Tracinda's "Spokesperson"

Yeah, it's total speculation on our part but we can't think of anyone else Micki would be talking to with this kind of knowledge of the direction Tracinda's looking to take with GM — save Kirk Kerkorian or Jerry York or one of their inner circle. We're ruling out usual suspect Anthony Mandekic, who's usually more than willing to sign anything Tracinda sends out (in fairness, that's his job as secretary/treasurer/flunky of the board of the holding company). That leaves us with three possible perps, all of whom know their proverbial shit (see paragraph five for sly out-of-quotes usage of Kerkorian's name). Nonetheless, this "spokesperson" said a number... More »

Could Kerkorian Push GM Into Ghosn Renault-Nissan?

According to the AP, KirkKerk's Tracinda Corp, which owns nearly a 10th of GM, in a partnership with Renault and Nissan, could easily purchase 30% of the ailing American automaker, giving them a hefty vote on the board, and possibly ending Rick Wagoner's lifelong career with the General. Some are for the deal, hailing Carlos as a turnaround genius, while others see it as a ploy by Kerkorian to get his way. In any event, things undoubtedly just got more hairball at the RenCen, especially among the lifelong Michiganders who blanch at the thought of moving to the Volunteer State. More »

New Pension Accounting Rules To Murder GM's Balance Sheet

None other than the august Wall Street Journal weighs in on new standards set forth by the Financial Accounting Standards Board regarding pensions, which could turn GM's remaining shareholders into paupers, should the company file for bankruptcy. Per the WSJ: More »

The Truth About the GM Death Watch: Kirk to Enterprise

Farago's latest savage flogging of the house built by a man with the middle name of "Crapo" continues with riffs on Dallas, the sinking of the Titanic, and of course tag-team partners Jerry York and Kirk Kerkorian. Using Daniel Gross' Slate analysis of the board, he accuses the execs of not cutting off their Rick nor installing their York in order to save their own asses, rather than salvaging the collective badonkadonk of the company itself. As a side note, Dallas' French theme song totally kills in a really bad, French kind of way. More »

Detroit News Sounds Pre-Death-Knell Bell For GM

Man, screw John Donne and Papa Hemingway, we wanna listen to Metallica's "For Whom the Bell Tolls," yo? And as of right now, the Detroit News has stepped up beside our Robert Farago in his candlelight vigil and taken him by the hand, solemnly grieving to the ringing thunder of the pealing bells. Predicting that somebody like Kirk Kerkorian could waltz up, buy the General lock, stock and smokestacks for $13.5 bil, turn around and sell off GMAC for $15 billion and then dump the company into receivership, walking off with a tidy profit in the process; the whole situation's become a huge worry for Detroit, and what's more, when sombody that big goes down, chances are good we're all gonna feel it. We're gonna go listen to Ride The Lightning now. [Thanks to Nicholas for the tip.] More »