Kerkorian's Selling Spree Ends, Dumps Last GM Stake

After selling in parts his stake in General Motors Corp, billionaire investor Kirk Kerkorian has reportedly sold on Thursday his entire remaining investment in GM, signaling an end of his longtime efforts to spur changes at the world's biggest automaker.

The selling spree started Nov. 23 when Kerkorian's investment company, Tracinda Corp., unloaded 14 million shares at $33 each, for total proceeds of $462 million, reducing itself to the fourth-largest shareholder with 7.4 percent, down from 9.9 percent.

Then on Thursday, Nov. 30 the investment firm had disclosed in a filing with the Securities and Exchange Commission that it had agreed to sell 14 million shares for $28.75 per share in a private transaction, again diluting from 7.4% to 4.9%.

And, the company later on Thursday reportedly sold its last block of investment in GM to Bank of America, a key lender to Kerkorian. According to a report of the Wall Street Journal published Thursday night on its Website, Kerkorian's Tracinda Corp. has sold its last 28 million GM shares for $29.25 each to lender Bank of America Corp.

However, both GM and Tracinda did not comment on the report. Bank of America spokeswoman Melissa Fox on Friday acknowledged the bank's completion of a transaction involving 28 million shares of GM stock, but she also declined to give details.

Kerkorian's investment company at one point was GM's biggest investor with a 9.9-percent stake at the world's largest automaker. Kerkorian, president and CEO of his private holding company had attempted to engineer a global alliance of GM with Renault SA and Nissan Motor Co, in hopes that alliance could help GM reverse the course of its failing business. But, GM Board had refused to back the alliance.

After it became clear that there would be no alliance, Kerkorian aide Jerry York in October resigned from the GM board.

Kerkorian had pressed money-losing automaker to partner with French automaker Renault and its Japanese partner Nissan but GM chief executive Rick Wagoner resisted the pressure stating that GM could survive on its own through the recovery plans it has set to revive.

Since the time GM board ended alliance discussions Kerkorian was upset and, as per the analysts, Tracinda’s share sale is the aftermaths of the rejection of that alliance.

General Motors Corp. stock was holding its value Friday, despite California investor Kirk Kerkorian selling 28 million shares of the U.S. automaker`s stock.

GM shares have dropped by about 15 per cent this month; however, they were firm on Friday. Shares in GM were up 0.6 per cent to 29.41 dollars in afternoon trading Friday on Wall Street, despite Kerkorian’s significant sale of 14 million shares.