Alexa

Kerkorian won't purchase more GM stock; York resigns from board

Kerkorian won't purchase more GM stock; York resigns from board

Dissident General Motors Corp. shareholder Kirk Kerkorian said Friday that he will not acquire additional stock in the company, citing GM's decision not to pursue an alliance with Renault and Nissan.
Kerkorian also said that his adviser Jerome York is resigning from the GM board.
Kerkorian, the billionaire investor who owns a 9.9 percent stake in the company, has been pushing for more changes at GM. The company has said its own restructuring program, which includes job and plant cuts, is starting to show results.
GM shares tumbled on the news, shaving about $800 million (euro631.7 million) off the company's value and about $80 million (euro63.2million) off Kerkorian's stake. GM shares dropped $1.43, or 4.3 percent, to $31.70 in afternoon trading on the New York Stock Exchange.
Kerkorian, who promoted the idea of GM joining Renault SA and Nissan Motor Co. in a broad alliance, had told the Securities and Exchange Commission last week that he was considering increasing his stake in GM to as much as 12 percent.
In a filing to the SEC on Thursday, Kerkorian's Tracinda Corp. said it no longer planned to acquire those shares. But it said it would continue to review its investment in GM and may dispose of or acquire more shares in the future.
A message seeking comment was left for a GM spokesman.
GM, Nissan and Renault announced on Wednesday that they were ending their alliance talks. GM Chief Executive Rick Wagoner said the company believed it would benefit from the proposed linkup far less than Nissan and Renault, which already are joined in an existing alliance. GM wanted the other companies to compensate it for that imbalance, but Renault-Nissan said that demand contradicted the spirit of an alliance.
Wagoner said GM's board voted unanimously on Tuesday to end the talks, meaning York also voted against the alliance. But Tracinda said it was disappointed by GM's decision.