Kerkorian Increases GM Stake

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Billionaire investor Kirk Kerkorian spent nearly $56.8 million to increase his stake in General Motors Corp. to 9.9 percent, a day after the Federal Trade Commission said it would not oppose his plan to raise his ownership from 9.5 percent.


Kerkorian’s Tracinda Corp. purchased 2.1 million shares at an average price of $26.98 to bring his total to 56 million shares, according to a U.S. Securities and Exchange filing Wednesday.


On Tuesday, U.S. antitrust authorities said they completed their investigation of Kerkorian’s proposal which included increasing his stake and possibly seeking a seat on GM’s board without taking any further action.


On Sept. 21, Kerkorian’s Beverly Hills-based Tracinda said it might ask for representation on General Motors’ board and that it intended to raise its stake in the automaker.


In a filing with the Securities and Exchange Commission, Tracinda said it planned to increase its ownership interest to as much as 9.9 percent of outstanding shares. Tracinda had sought approval from antitrust officials as well.


On May 4, Tracinda, the majority owner of casino and hotel chain MGM Mirage, announced a tender offer to pay $870 million to buy up to 28 million shares, or nearly 5 percent of total General Motors stock.


Tracinda ended up purchasing 18.9 million shares, leaving it 9.1 million shares short of the stated goal. However, in a Sept. 1 filing, the company said it had increased its GM stake to 9.53 percent in three separate private transactions, starting in late August.

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