Off late I had started repenting my christening of the tottering duo but a recent development affirms my christening yet again. GM is in ‘a more than tottering state’ as its major shareholder a US Billionaire, Kirk Kerkorian has confirmed to sell 14 million shares, which will cut down his stake in the company from 9.9 percent to 7.4 percent.
Prior to this Kerkorian was the second largest shareholder in GM and this recent development now places him fourth on the companies stake holders list . Kerkorian took this step as his attempt to push a global alliance with French Renault and the Japanese Nissan was nullified because of the failure of talks between Rick Wagnor and the heads of Renault and Nissan.
The speculation of the Billionaire cropping his stake had already pushed the stock sharply lower this week. Wonder what the consequences after the affirmation would do! Simultaneously the news of Kerkorian reinvesting in the MGM shares bloomed up the value of shares owned by the casino operators.
Tracinda, Mr. Kerkorian’s Beverly Hills-based investment vehicle. Cited :
This tender offer demonstrates our confidence in MGM Mirage and its management and our commitment to the company’s future .
Kirk Kerkorian is California’s richest man who’s estimated worth is $9 billion, clearly meaning GM has lost faith of an important and affluent investor who could have proved prolific in numerous upcoming ventures. GM is heading only one way i.e. ‘Down the Drain’ and such developments add to its tottering identity.
Image Courtesy : Autoblog
Moneycentral:Credit: FinancialNews
