Kerkorian May Seek GM Board Seat, Increased Stake
By – 9/21/2005
Los Angeles Business Journal Staff

Billionaire investor Kirk Kerkorian’s Tracinda Corp. said on Wednesday it
may ask for representation on General Motors Corp.’s board and that it
intends to raise its stake in the automaker.

In a filing with the Securities and Exchange Commission, Tracinda, which now
holds a 9.53-percent GM stake – or 53.9 million shares – said it plans to
increase its ownership interest to as much as 9.9 percent of outstanding
shares. Tracinda said it had sought approval from antitrust officials on
Wednesday.

In the filing, Tracinda said it does “not have a present intent to acquire
or influence control over the business of General Motors” and that the
shares are being acquired “for investment purposes.” The acquisition of 10
percent or more of the shares would require various approvals, including
those applicable to GM’s financial services subsidiaries, the filing states.

On May 4, Tracinda, the majority owner of casino and hotel chain MGM Mirage,
announced a tender offer to pay $870 million to buy up to 28 million shares,
or nearly 5 percent of total General Motors stock.

Tracinda ended up purchasing 18.9 million shares, leaving it 9.1 million
shares short of the stated goal. However, in a Sept. 1 filing, the Beverly
Hills-based company said it had increased its GM stake to 9.53 percent in
three separate private transactions, starting in late August.