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Kerkorian Makes A Move For Ford
By: News Visual   Wednesday, June 11, 2008 10:19 AM
Sectors: Auto/Tire/Trucks
Symbols: F, MGM
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(NewsVisual, powered by IntellectSpace ) -- Ford Motor Co (NYSE: F) could be seeing a boost as financier Kirk Kerkorian has said he plans to up his stake in the underperforming auto maker.

The deal would give Kerkorian's investment company, Trancinda, a 5.5 percent stake in Ford after purchasing 20 million shares at $8.50 each.

The purchase price offers a hefty premium over the current price of Ford's stock, which has taken a dramatic drop in the past month after the company announced that it wouldn't be seeing a profit by next year, fueled by lowered production demands and fuel costs (see article from The New York Times).

NewsVisual created an IntellectSpace Knowledge Map, which illustrates that Kerkorian has sizeable corporate experience through his leadership positions held at companies like Tracinda and MGM. The past deals that he has made through his investment vehicle Tracinda could increase the confidence of Ford's shareholders and lead to a boost in share price and performance.

Throughout the years, Kerkorian and Tracinda have been involved in the turnaround many auto industry giants, including Chrysler Corp. Ford investors may crossing their fingers that Kerkorian's interest in the company could eventually lead a turnaround.



 

 
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