Kerkorian Launches Offer for 28 Million GM Shares

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Billionaire investor Kirk Kerkorian on Monday launched his previously announced offer of nearly $870 million to buy up to 28 million shares of General Motors Corp. common stock for $31 each.


Kerkorian had said last week that his Beverly Hills-based investment firm Tracinda Corp. would seek to more than double its stake in the world’s largest automaker. GM’s shares soared 18 percent to $32.80 on May 4 when Tracinda announced its plans .


The offer for the equivalent of nearly 5 percent of GM shares is scheduled to expire on June 7, unless extended, the company said in a press release.


In a filing with the Securities and Exchange Commission Monday, Tracinda said it currently owns 22 million shares, or 3.9 percent of GM’s outstanding shares. When it purchases 28 million shares, it will have an 8.8 percent stake in the automaker. Tracinda reiterated that it is acquiring the GM shares for investment purposes only, and does not intend to acquire or influence control over General Motors’ business.


The offer price, including the regular quarterly dividend, represents a nearly 13.4 percent premium over General Motors’ closing stock price of $27.77 on May 3. D.F. King & Co. is the information agent for the offer.


GM shares were up 0.7 percent to $30.96 in midmorning trading Monday.

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