Tracinda Corp., run by billionaire investor Kirk Kerkorian, has boosted its stake in General Motors Corp. to 7.2% after it purchased 18.9 million shares as part of a tender offer, the company said on Wednesday, according to the Associated Press (AP) – GM shares rose 4% in morning trading.
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Kerkorian reportedly had been seeking to purchase up to 28 million GM shares at $31 each.
AP added that General Motors shares rose $1.22 to $31.95 in morning trading on the New York Stock Exchange – its shares have traded in a 52-week range of $24.67 to $48.27.
Tracinda reportedly said it will purchase all 18,926,557 shares tendered, boosting Kerkorian’s stake in GM to 40.9 million shares, or 7.2% of GM’s shares, from 22 million shares, or 3.89%.
If the offer had been fully subscribed, Kerkorian’s stake would have climbed to 8.84% of GM shares, or a total of 50 million shares, the Associated Press noted.
