Billionaire investor Kirk Kerkorian’s investment company has sold part of his 6.5% shareholding in Ford and could sell the rest of the stake.
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In a statement, Tracinda Corporation said it would reduce the Ford holding and focus on other sectors “in light of current economic and market conditions”.
“It sees unique value in the gaming and hospitality and oil and gas industries and has, therefore, decided to reallocate its resources and to focus on those industries,” the statement added.
Tracinda on Monday (20 October) sold 7.3m Ford shares at US$2.43 each, retaining 133,500,000, and said has contacted an investment banking firm “regarding the possible sale of such shares”.
Reuters noted that Ford stock had fallen over 60since Kerkorian raised his stake to 6.5% last June, saying he was willing to support the automaker’s turnaround with additional capital.
Reuters noted that Kerkorian’s offer had been widely seen as a boost to Ford at a time when domestic automakers were facing increasing scrutiny over their ability to ride out a sharp downturn in US vehicle sales.
