bdubsee

York is Resigning GM Board - Kirk not buying more

49 posts in this topic

bdubsee    0

Kerkorian won't buy more GM

GM's No. 1 individual shareholder says due to end of Nissan-Renault talks he won't try to buy 12M more shares; Kerkorian's advisor quits GM board.

October 6 2006: 12:28 PM EDT

NEW YORK (CNNMoney.com) -- Kirk Kerkorian, General Motors's largest individual shareholder, has dropped plans to buy another 12 million shares of the company's stock, and his advisor Jerome York has resigned from the GM board, due to the company breaking off alliance talks with Renault and Nissan.

The moves were announced Friday in a filing with the Securities and Exchange Commission by Tracinda, Kerkorian's own investment firm. Tracinda already owns 56 million shares of GM (Charts), a 9.9 percent stake in the company.

Kirk Kerkorian

Kerkorian, formerly the lead shareholder in Chrysler when it was purchased by Daimler-Benz to form DaimlerChrysler (Charts), was the one who pushed GM to pursue an alliance with Renault and Nissan (Charts). The companies announced Wednesday they had broken off the talks because Nissan and Renault was unwilling to pay GM to join their existing alliance.

Kerkorian had only disclosed his intention to buy additional GM shares last week, saying in the filing at the time that he still saw promise in the alliance. He expressed disappointment Wednesday when the talks were halted...

http://money.cnn.com/2006/10/06/news/compa...sion=2006100612

Edited by bdubsee

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Guest buickman   
Guest buickman

Preliminary blurb from CNN.com

Dissident General Motors shareholder Kirk Kerkorian says he will not acquire additional stock in the company and his representative on the board is resigning, The Associated Press reports.

202017[/snapback]

Rick better hold his breath. If KK starts dumping stock, the bottom will fall out fast.

Buickman

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Satty    338

So the merger falls through and Kirk throws a hissy fit, pulls York from the board and says he wont acquire more stock and he may end up dumping all of the stock he does own. Mature.

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Drew Dowdell    5,159

Rick better hold his breath. If KK starts dumping stock, the bottom will fall out fast.

Buickman

202019[/snapback]

If that did occur then it will be time to buy more stock. The stock isn't at 32 because Kirk is a shareholder. At worst there would be a temporary dip and the stock would rebound.

Sounds like Kirk is going to help me make even more money.

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Guest buickman   
Guest buickman

If that did occur then it will be time to buy more stock.  The stock isn't at 32 because Kirk is a shareholder. At worst there would be a temporary dip and the stock would rebound. 

Sounds like Kirk is going to help me make even more money.

202022[/snapback]

GM is all but bankrupt. You had better sell your stock (and go short or buy puts) and fast! The price will drop under twenty by month end is my prediction without support from KK.

Buickman

Edited by buickman

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tama z71    0

GM is all but bankrupt. You had better sell your stock (and go short or buy puts) and fast! The price will drop under twenty by month end is my prediction without support from KK.

Buickman

202023[/snapback]

Can you support that claim with references more credible than Robert Farago?

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Satty    338

GM is all but bankrupt. You had better sell your stock (and go short or buy puts) and fast! The price will drop under twenty by month end is my prediction without support from KK.

Buickman

202023[/snapback]

Ok, On Halloween I want to re-visit this thread and laugh my ass off.

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Drew Dowdell    5,159

You know what is odd? In announcing this move, Kirk has killed any chance of getting out of his GM stock profitably. He should have just kept saying "yeah, I'm planning on buying more stock" while quietly selling bits and pieces and calling it a "portfolio adjustment".

I'm calling his bluff, this is just a retaliatory move on Kirks part.

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bdubsee    0

The stock has dropped $2+ (from $33.13 open) since noon. In context, the stock was just over $29 on 9/5 and under $28 on 7/17. It will be interesting to see how this pans out.

Edited by bdubsee

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bdubsee    0

Interesting quote from the 13 D filing of Tracinda:

The Filing Persons have decided not to pursue the acquisition of additional shares of General Motors common stock. The Filing Persons will continue to review their investment in General Motors and may determine, based on market and general economic conditions, the business affairs and financial condition of General Motors, the market price of its shares and other factors deemed relevant by the Filing Persons, to acquire or dispose of additional shares.

Complete document:

http://www.sec.gov/Archives/edgar/data/407...199/dsc13da.htm

Edited by bdubsee

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Mr.Krinkle    0

this guy gets a hard on just knowing the stock will rise if he says boo and drop when he sees peep.

clearly, he wanted the best for gm and this proves he only had their best intentions in his heart.

stock is still a buy. theres gonna be a lot more to this story, and can only wonder what carlos really had in mind that the board told him to hit the road jack.

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Mr.Krinkle    0

LOL....um...I'll assume you werent being sarcastic.

202049[/snapback]

yea, i suppose its a little funnier that way.

this is gonna be going all day with plenty of updates, but this from bloomberg

outlines some of the possible next steps.

everyones gotta be saying to themselves, "kirks playing with the stocks again."

hes gotta want something...

http://www.bloomberg.com/apps/news?pid=206...yZZw&refer=news

CNBC just got a hold of York's resignation letter. York cites a bad boardroom environment and bad leadership from Wags.

yeah, they didnt want to do what he said...

Edited by Mr.Krinkle

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FAPTurbo    1,090

The guy is showing his true colours. He's a corporate raider, simple as that... and a big baby of a fossil.

If he really wanted to save GM, he'd blow off the failed Renault-Nissan idea and try and find another way or method to help... not give up and throw a hissy fit.

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Cadillacfan    0

Does this mean Buickman will have to wait longer for Rick to leave? Aww. I feel so bad for him. Well, at least he has a large support group over at GMI.

Everyone knows that Kerkorian was only hoping to profit off of the merger and then leave. He was the one who initiated it in the first place. He couldn't have cared less about GMs future and his backing out just gives us proof of his true intentions.

Now, he has his lapdog York badmouthing the board and Wagoner to the press hoping people will think twice about buying stock. They're doing this because thier pride was hurt.

Don't let the door hit you on the way out.

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Northstar    11

So, Buickman, if Kerkorian is such a supporter of GM, why does he pull his man from the GM Board after this? Shouldn't he still be trying to help GM and having someone on the Board to make some good decesions?

Oh, wait, he never really cared about GM. He just saw an oppurtunity to make a lot of money, implemented his plan, which didn't work, and now doesn't give a $h! about GM (as evidence from York "resigning" aka Kerkorian not caring anymore) because his plan fell through and he can't make as much money as he wanted too.

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FAPTurbo    1,090

Now didn't Kirk try the same thing with Chrysler? He then ended up taking them to court, only to get laughed out of it?

Like I said before... if this guy had GM's interests in mind, he wouldn't give up like this, pull his main man on the board and declare he isn't buying more stock.

The old guy's gettin' older and still trying to get richer. I hope Wags gave him a theoretical "one between the eyes" with this situation. Maybe Kirk will realize that maybe he's wealthy enough, and should begin to maybe use some of his cash to better the world.

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Guest buickman   
Guest buickman

Word is that York is already lining up new management to replace Red Ink Rick and his inept cohorts. Wagoner may have been able to withstand the onslaught from Buickman, but Casinoman is another story. I, for one, am in favor of KK and Co., if only as the lesser of two evils.

the voice...

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