Kirk Kerkorian's Tracinda Corp. intends to make a cash tender offer for up to 28 million common shares of General Motors Corp., Detroit, at $31 a share, according to a news release from Tracinda. The offer would represent 4.95% of GM's outstanding shares. Tracinda currently holds 22 million GM common shares, which represents about 3.89% of the company's outstanding shares. Mr. Kerkorian is the sole shareholder of Tracinda.
GM stock was up 4.83 points at $32.60 a share just prior to today's close.
"Tracinda became aware of rumors over the weekend concerning its possible purchase of shares of General Motors stock," according to the release. "Since Tracinda's acquisition of General Motors stock is solely for investment purposes, it decided to go forward with this tender offer to remove any uncertainty in the marketplace as to its investment intent."
Thomson Financial's ShareWatch website listed Capital Research & Management, with 64.7 million shares, and Southeastern Asset Management, with 26 million shares, as two of GM's largest institutional investors. Chuck Freadhoff, spokesman for Capital Research, did not return a call by press time seeking comment. Lee Harper, spokeswoman for Southeastern, said the firm does not comment on its clients' investments.
