May 10, 2005
Kerkorian Tender Offer for GM
Kirk Kerkorian has announced a tender offer for 5% of the outstanding common stock of GM. If successful he will control close to 9% of the stock, making him one of the largest shareholders.
Only in America could an 87 year old fellow publicly claim that he is in for the long haul as an investor. In his public statements he has stated that he has not intention of attempting to control or influence the management of GM. This will strain the definition of "influence." If asked by GM management as to what he would suggest for the company is that "influence"? If he makes unsolicited suggestions but does not attempt to run for or put a nominee on the board is that "influence"? The legal line between normal investor oversight and investor "influence" has yet to be drawn by a court or by the SEC.
May 10, 2005 | Permalink
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