Kerkorian may push for more divestitures at Ford
X-Sender: Asbed Bedrossian <[email protected]>
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[Posted on May 2, 2008 at 4:40 PM]
Though Kirk Kerkorian and Ford Motor Co. CEO Alan Mulally appear to still be
comfortably in the honeymoon period of their newfound relationship, hints
are emerging about what direction billionaire Kerkorian might head should the
partnership eventually hit the rocks.
Automotive News _says_
( y-says-ford-should-offload-mercury-volvo/) that Jerome York, Kerkorian’s primary
adviser on automotive matters, met with Mulally after the investor’s Tracinda
Corp. began _building_
( ename=TheDeal/TDDArticle/TDStandardArticle&bn= NULL&c=TDDArticle&cid=1207771448094)
what he hopes will be a 5.6% stake in the automaker. While Kerkorian has
publicly praised Mulally and has said he is buying the stock as a passive
investor, York apparently was telling Ford executives that if it were up to him he
would look closely at divesting Mercury and Volvo. Ford has sold a number of
assets in recent years, including most recently its _Jaguar and Land Rover _
( ename=TheDeal/TDDArticle/TDSta
ndardArticle&bn =NULL&c=TDDArticle&cid=1206369116399) nameplates, but has
said its divestiture campaign is over for now as it focuses on restructuring
its North American operations.
Many in the industry have suggested a shuttering of Mercury and an eventual
sale of Volvo. But if Kerkorian eventually decides to turn up the heat on
management, which might be inevitable, his reputation and large stake could
make it more difficult for the family-controlled automaker to just ignore the
wishes of investors.
For now, however, there appears to be little pressure on Mulally to change
direction. York in an e-mail to The Wall Street Journal said Tracinda bought
into Ford because it was impressed by the company’s direction, offering no
suggestion that the automaker pursue sales. ""Alan Mulally . . . is the good
stuff," York wrote. – Lou Whiteman
The Deal LLC
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