Saturday, October 07, 2006

Kerkorian interested in buying up to 12 million more GM shares

Thursday, September 28, 2006
Kerkorian interested in buying up to 12 million more GM shares
Tom Krisher / Associated Press

DETROIT -- General Motors Corp. dissident shareholder Kirk Kerkorian's Tracinda Corp. has told GM it is interested in acquiring up to 12 million more shares of the company, which would give it more than a 10 percent stake, as the world's No. 1 automaker continues discussions with Renault and Nissan about a three-way alliance.

Tracinda already owns 56 million shares, or 9.9 percent of the company's common stock. Going over 10 percent would require a number of regulatory approvals, GM said, because the company owns banking and insurance interests.

Tracinda said in a Securities and Exchange Commission filing that it also still supports the alliance between GM and automakers Renault SA of France and Nissan Motor Co. Ltd. of Japan.

"Tracinda continues to believe that a strong opportunity exists in a potential alliance between General Motors, Renault and Nissan and that there should be strong General Motors Board involvement in the analysis of such a potential alliance, including the utilization of independent advisors," Tracinda's filing said.

GM currently has about 565.6 million outstanding shares. A Tracinda purchase of 12 million more shares would bring Kerkorian's stake to 12 percent of the company.

"We are seeking the cooperation and support of the company and its management in connection with these filings and any related proceedings, as we believe additional investment by Tracinda in GM would be viewed positively by investors, and your support will maximize the likelihood of obtaining regulatory approval," the filing said.

In the filing, in the form of a letter to GM Chairman and Chief Executive Officer Rick Wagoner, Tracinda told GM it is interested in buying 6 million shares of common stock on the open market and may consider buying an additional 6 million shares.

The letter was filed Thursday morning with the Securities and Exchange Commission.

In a statement, GM said Tracinda told the company of its intent on Wednesday night, saying that it would update its filings with the SEC.

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