Tracinda corporation – Kirk Kerkorian’s investment fund – is selling its stake in Ford.
Gambling makes a better investment, it seems. Here is the SEC filing:
LOS ANGELES, CA-October 21, 2008-Tracinda Corporation today announced that 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.
Accordingly, Tracinda stated that, on October 20, 2008, it sold 7.3 million shares of the common stock of Ford Motor Company (NYSE: F) in the open market for an average price of $2.43 per share, before commissions. Tracinda also stated 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 (approximately 6.09% of the outstanding shares), depending upon market conditions and available sales prices, and that it has contacted an investment banking firm regarding the possible sale of such shares.
Alas, it was only five short months ago in April that Kerkorian was building his holding in Ford. Tracinda began accumulating 100m shares at the beginning of that month, at an average of $6.91 a share, according to reports at the time.
Things came to a head when right at the end of April, a solicitation from Tracinda for 20m Ford shares at $8.50 each was met with nearly a billion shares tendered by stockholders looking to sell.
In retrospect, that was probably a signal. Could have been worse, one supposes.
