On Tuesday, billionaire and Tracinda Corp CEO Kirk Kerkorian further reduced his holdings in Ford to 107.1 million shares, or roughly 4.89% of the company’s controlling stock. Kerkorian, who was formerly Ford’s largest private shareholder, took the market by surprise last week when he unexpectedly sold 7.3 million shares of Ford common stock at an astounding loss for a mere $2.43 (approx.) a share. Largely unannounced, the fire sale significantly reduced Kerkorian’s previous 6+% holding in Ford and was accompanied by the public acknowledgement that Kerkorian intended to continue reducing his holdings, possibly even selling all 133,500,000 of his remaining stock.
Apparently true to his word, as of Tuesday, Kerkorian’s stake in the company was reduced to under 5%, thereby exempting him from reporting any future activity with the Securities Exchange Commission.
Last April, after Ford CEO Alan Mullaly managed to produce a modest $100 million quarter profit in the wake of a two-year, $15.3 billion dollar loss, Kerkorian began snapping up Ford stock at an average of $7.07 a share. Seen as a vote of confidence in the Dearborn automaker, Kerkorian ultimately purchased a total of 141 million shares priced together at $995 million, the acquisition of which effectively gained Kerkorian a 6.5% controlling stake in Ford. Currently, from Monday, October 21 to Monday, October 27, Kerkorian has sold 26.4 million of those 141 million shares at a total loss of $133 million dollars.
Source: Detroit Free Press