Kirk Kerkorian's Tracinda Corp., which had become Ford Motor Company's largest private shareholder, has reduced its stake in the automaker for a substantial loss. The company said that "in light of current economic and market conditions" it wishes to focus its efforts into gaming, hospitality, and energy.
Kerkorian had begun buying Ford shares in April for an average of more than $6.00 a share. On October 20, however, Tracinda sold 7.3 million shares at a price of $2.43 per share. Tracinda still retains 133.5 million shares in Ford which represents 6% of Ford's outstanding common stock. In a statement, though, Tracinda announced that it intends "to further reduce its holdings of Ford common stock, including the possible sale of all of its remaining 133,500,000 shares."
Ford is falling on exceedingly hard times. Its shares have fallen below $2.00 a share, the chief financial officer, Don Leclair announced his retirement, and two of Ford's board members have recently resigned.
Source: Detroit Free Press