Kerkorian's company, Tracinda Corp., added approximately 141 million shares of Ford between April and June of this year at an estimated cost of approximately $1 billion. This was when sales were bad. Now car sales are worse and the economy, obviously, is in the crapper. Kirk has already unloaded a little more than 7 million shares at a price of $2.43 per share (average), or about $18 million. As of this writing Ford is trading at $2.17 per share. Assuming it sells at that rate, the total value of the remaining stocks equals about $291 million. Add in the $18 million from the recent selloff and you're looking at a $1 billion purchase now worth $319 million. Even if he can sell the rest of the stock at $2.43 a share (he probably can't) there is still a loss of over half-a-billion dollars. To make matters worse for KirkKerk, he apparently used some of his casino business and other holdings as collateral for the credit to invest in Ford.

This makes us wonder if betting on Ford wasn't more like Russian Roulette than Blackjack. [Portfolio]

Given that Ford stock closed at $6.04 in Friday trading, one would think that Mulally and Co. would be advised to take the money; so far, no one in Dearborn is commenting, and Ford's board claims to be neutral on the matter. There's also no word on whether the 5.5% stake in Ford would be enough to allow Kerkorian to finally leap, or whether Ziggy says he actually has to gain a controlling interest in one of the Big Three to complete his mission.
[Freep]

Sweet Peet D looks at the ways GM, Nissan and Renault could unite on specific products, including an engine-manufaturing alliance much like Hyundai, DCX and Mitsu's GEMA, as well as some platform-sharing. And in the Autoextremist's eyes, that's all they're gonna get out of Ghosn, York and Kerkorian's talks with Wagoner. Or, all they should get. In his eyes, this is nothing short of a hostile bid, with York as the conductor and Kerkorian the cash behind the operation. Peet thinks GM can and will resist the attack, also going so far as to only allow Kerkorian to have a rep on the board that isn't Jerry York.

A scenario that GM can live with is a scenario that won't sit well with Kerkorian-York [Autoextremist]

Related:
The Three Amigos of Ego: Autoextremist on the Renault-Nissan-GM Deal [Internal]

Automotive News just reported GM called an emergency board meeting Friday to examine Kirk Kerkorian's proposal for a GM-Renault-Nissan alliance. GM's not commenting yet. We've already ordered an LS7-powered 350Z — in our mind.

Wagoner Strikes Back: GM Responds to Renault-Nissan Merger Talk Ghosn Crazy? Renault-Nissan Looking to Buy Minority Interest in GM [internal]

General Motors issued a "oh no you di'int" to this morning's media feeding frenzy regarding ot the recent 13-D filing that indicated Renault-Nissan's intention to buy an interest in GM:

General Motors Corp. (NYSE: GM) has received no offer or proposal from Renault/Nissan with respect to its participating in the Renault/Nissan Alliance, as suggested in the 13-D Filing made today by the Tracinda Corporation. The Tracinda request will be taken under advisement by the GM Board of Directors. At this time, we have no further comment.

Related:
Ghosn Crazy? Renault-Nissan Looking to Buy Minority Interest in GM [internal]

Automotive News is reporting GM's chief side-thorn Kirk Kerkorian — who controls 9.9% of the company's stock — is pushing a deal that would allow Renault-Nissan to buy a minority interest in General Motors. But that's not the end of it. In a letter Kerkorian wrote to Renault-Nissan CEO Carlos Ghosn and Renault Chairman Louis Schweitzer, he said he wants to explore a "three-company, partnership-based alliance." In other news, every M&A lawyer in the world just climaxed. [Thanks to Jeffrey for the tip.] [UPDATE: No comment from Renault.]

Related:
Hello, Jerry (Hello, New Man): Kerkorian's Guy Gets GM Board Seat [internal]

Sweet Peet D sounds off at the heads who are calling Kerkorian point-man Jerry York a savior. Interestingly, Peet and Jerry worked together on Dodge campaigns, back when pre-Autoextremist Peet was a creative director (not an assistant creative director), and DeLorenzo feels that York's not the man-in-a-storm that GM needs right now, and that he won't work to overturn GM management, nor are his damage-control PR skills enough to right the listing ship.

GM's savior? In a word, no. [Autoextremist]

Related:
Autoextremist on the Impending Doom of Car Mags [Internal]

And that, my friends is how you sweep the taxman's leg. Kirk "Miyagi" Kerkorian, billionaire financier and GM antagonist snapped up 12 million shares of GM stock in a buyback deal that happened like clockwork. Kerkorian, through his Tracinda Corporation, sold the same amount at the end of 2005 — at a capital loss — for millions of dollars in tax advantages. The new stake — seven million shares bought on the open market and five million bought in a private transaction, according to the New York Times — reportedly cost $263 million, and returns the Big K's ownership stake to just under 10%, up from 7.8% pre-rebuy. Still, with GM reporting its fourth-quarter results this morning, maybe he should have waited the extra day.

Related:
Sell, Mortimer, Sell!!: Kerkorian Unloads Millions of GM Shares [internal]

Eternal corporate busybody Kirk Kerkorian has cut his stake in GM by 20 percent, selling 12 million shares and sending the stock on a downward spiral ending at a 23-year low. GM shares began yesterday 5.7 percent higher than they were at the end of the day, falling $1.20 to $19.85. Failing to score a seat on the board of directors for one of his associates, Jerome York, last week may have influenced his decision to cut his losses and run for the hills, curtailing a bid for influence many had speculated would end in a hostile takeover attempt. But Kerkorian says the sale was made to take advantage of a capital loss by year's end that could save him millions in taxes. We have a feeling this story is far from over.

General Motors' European Stock Falls as Kerkorian Pares Holding [Bloomberg]

Related:
Slate on GM's Boardroom Mess [internal]

The inimitable KirkKerk, swinging corporate raider and owner of 9.9% of GM stock, has been tossing the ball back and forth with the higher-ups at the automaker about taking a seat on the company's board of directors. Apparently, the seat would go to Kerkorian's #2, former Chrysler CFO Jerry York. While GM admits they're mulling over the possibility, they've stopped short of actually offering the position to York, and it's not entirely clear yet whether Kerkorian's Tracinda Corp. wants the added responsibility of a board seat. It'll be interesting to see how this one plays out, as it could signal Kerkorian's intentions toward GM.

GM, Kerkorian discuss board seat [Detroit News]

Related:
Detroit News Sounds Pre-Death-Knell Bell for GM [Internal]

According to rumors coming out of Germany's Deutsche B rse exchange, Wall Street raider Kirk Kerkorian may be attempting to look up VW's corporate skirt. The company's stock has jumped 5.5% to a three-year high of $60.38, due to 12 million VW shares changing hands of late. According to the Guardian UK, that number amounts to four times the stock's normal daily volume. While there's no proof Kerkorian's craggy thumbprint is on the upswing, it wouldn't be the first time Mr. K inserted himself between an underperforming corporate giant and the 800-pound labor-relations gorilla reclining across its balance sheet. Others think it's horseshit; that VW's situation is too untenable for the antediluvian Kerkorian to bother with, or that he's a convenient symbol for German nationalists to spot lurking in the trees. Stay tuned.

Kerkorian rumours drive Volkswagen shares to three-year high [The Guardian]

Related:
Bullish or Bearish on Kerkorian? [internal]