Kerkorian May Seek GM Board Seat, Increased Stake

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Billionaire investor Kirk Kerkorian’s Tracinda Corp. said on Wednesday it may ask for representation on General Motors Corp.’s board and that it intends to raise its stake in the automaker.


In a filing with the Securities and Exchange Commission, Tracinda, which now holds a 9.53-percent GM stake or 53.9 million shares said it plans to increase its ownership interest to as much as 9.9 percent of outstanding shares. Tracinda said it had sought approval from antitrust officials on Wednesday.


In the filing, Tracinda said it does “not have a present intent to acquire or influence control over the business of General Motors” and that the shares are being acquired “for investment purposes.” The acquisition of 10 percent or more of the shares would require various approvals, including those applicable to GM’s financial services subsidiaries, the filing states.


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 Beverly Hills-based 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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