Kerkorian adds $100 million to funds for Ford shares

Source: Exec Digital USA

Date :5/23/2008 4:51:32 AM

Kirk Kerkorian has added $100 million to his funds for buying up to 20 million shares in Ford Motor Company, making his offer more attractive.

The automaker yesterday announced that 2009 will not be as profitable as previously forecast. Shares of Ford closed at US$7.16, down 64 cents, or 8.2 percent on Wednesday.

Kerkorian is offering to buy 20 million shares in the company at US$8.50 per share, and has said he will consider buying shares beyond the 120 million planned.

Attractive bid

Mr. Kerkorian, who is offering a 19 percent premium, already owns 100 million shares in Ford. If his offer is accepted, the billionaire investor will have a 5.5 percent stake in the automaker.

Ford announced further job and production cuts yesterday amid the economic slowdown, which is causing fuel and material prices to rise.

Mr. Kerkorian’s Tracinda Corp. investment company caused shares in Ford to rise to $8.21, leaving shareholders with a three percent premium, when it announced its offer in April. The offer to Ford’s shareholders expires on June 9.

The investor has said he may borrow as much as US$600 million from Bank of America Corp., according to a regulatory filing by Tracinda Corp.

May 23, 2008