Date: 04-30-2008
Billionaire investor Kirk Kerkorian has announced that he will increase his stake in Ford Motor Co. to 5.7% four days after the company posted a $100 million profit. The additional investment is expected to amount to a whopping $861 million, or $8.50 per share for a total of 20 million shares. Analysts have differing opinions on Kerkorian’s motives for showing interest in Ford. The company has lost about $15 billion in the last two years and only managed to rake up decent returns in the most recent quarter. Kerkorian dumped his stock in General Motors in 2006, only a year after he bought it. GM is currently in a bad phase, with shares tumbling 12% this year and a two-month strike at American Axle & Manufacturing Holdings Inc slowing production. The losses due to the strike are said to be immense as about 31 GM plants have been idled due to parts shortages, paralyzing the company’s pickup truck production.
