Kirk Kerkorian who has had a long history with the U.S. auto industry apparently likes what he sees with the Ford Motor Company. Despite a horrible sales year so far, Kerkorian recently bought additional shares of Ford, pushing his stake in the company up to 6.49%.
Tracinda Corp., which is wholly-owned by Kekorian, revealed last week that the investor billionaire had purchased 20.8 million more shares of Ford stock, raising his stake in Ford a full percent, which comes out to be 140.8 million shares in all. This news comes following a meeting Tracinda officials had with Ford Chairman Bill Ford Jr. and CEO Alan Mulally in Las Vegas.
The investment Kerkorian has made in Ford couldn’t have come at a better time. Ford, like GM and Chrysler, is getting hammered on the home front this year as consumers make a sudden and unprecedented shift to smaller cars. Ford, caught top heavy with fuel thirsty big pick ups and SUVs, is scrambling to retool by putting certain European models on U.S. assembly lines and by reintroducing its world car, the Fiesta, to the American market.
Stock prices for Ford are at record low levels, making Tracinda’s investment a value for that company. Some analysts predict that Ford’s share price could triple or even quadruple once the company puts its retooling work behind it and employee health expenses are shifted to the United Auto Workers. Both of these events will take place in 2010 when Kerkorian is 93 years old.
(Source: Detroit Free Press)