Billionaire Kerkorian accrues five percent share in Ford

Source: Manufacturing Exec

Date :29/04/2008 01:03:05

The billionaire investor Kirk Kerkorian has accrued a five percent share in Ford Motors and is seeking another one percent of the firm.

Kerkorian’s company, Tracinda Corp. now owns 100 million Ford shares, and when the offer is completed their stake will increase from 4.7 percent to 5.6 percent. The investor’s company plans to offer $8.50 per share for up to 20 million shares of Ford Motor Co.

Results

The Detroit-based company’s announced improved first quarter results last week, despite the effect of the US economy on the car market. Ford has confirmed it is now on track to return to profitability next year.

The move is an indication of the restructuring plan that is due to take place at Ford in order to transform the company into a global enterprise.

In a statement, Executive Chairman Bill Ford and Ford President and CEO Alan Mulally, said: “We welcome confidence in Ford and the progress we are making on our transformation plan. Any investor can purchase Ford shares, which are sold on the open market.”

April 29, 2008