Shares to the tune of 7.3 million have been offloaded from Ford by Kirk Kerkorian, the billionaire investor due to crash in his confidence in the company. He is also said to be contemplating on selling the remaining holding.
This move follows Kirk Kerkorian’s fear of a prospective huge loss on his investment in Ford which is almost to the tune of $1billion. Early this year saw Kerkorian supporting certain turnaround plans of the Ford management. He did this by investing and building up his holding to 6.5%.
Today’s move by Tracinda investments dealing with his portfolio shattered the US automotive industry which is already low in confidence. Tracinda sold Kerkorian’s 7.3 million shares for $18 million and also said it intends selling the balance shares after analyzing the market situation and available prices. Kerkorian’s balance shares are valued around $311 million as the Ford shares were trading at $2.33.
Decline in sale of vehicles due to the weak US economy resulted in a steep fall in the prices of automobile company shares. Reaction from Ford was subdued and the company’s spokesman Mark Truby said Ford continues to be focused on transforming the company into a most profit making industry.
Ford currently is investigating an unofficial and unconstitutional action by a few of its staff at the Southampton plant which produces the Transit. This action is thought to be a protest related to Ford’s plans for the Transit. Ford is planning on cutting down the output of the Transit at Southampton plant to half its current production.