Honda F1 website

DECEMBER 1, 2006

Kerkorian dumps all GM stock

Kirk Kerkorian is now punishing General Motors for refusing to listen to him and to merge with Renault and it is reported in the Wall Street Journal that he has sold all 28m of his remaining shares in a deal worth around $800m. It is reported that the shares were sold to the Bank of America. The billioniare previously owned 9.9% of the company. GM shares dropped to $29.23 after the news leaked out. The decision to sell came after GM decided against joining an alliance with Renault and Nissan, which Kerkorian wanted to see happen. The company thinks that it can survive without outside assistance and has been cutting production and reducing costs but it still has enormous pension and healthcare liabilities that it must pay in the years ahead. GM has been losing money at a frightening rate in recent years, faced by its huge costs and by competition from Toyota, Honda and Nissan in the key US markets.