Kirk Kerkorian,
the billionaire investor known for mega-deals and hostile takeover
bids, was seen as a "deep value" investor and he loved kicking the tires
in Detroit, looking for value, especially among auto companies that
were on the discount rack many times over the years.
His strategies roiled Detroit's auto and casino industries on multiple occasions. Here are some of his most memorable deals that solidified his reputation as an aggressive activist investor. He died Monday night at 98.
But he leaves a tremendous legacy, especially when it come to the auto industry. He touched each of Detroit's Big 3 automakers. Here's how:
• General Motors bid: Kerkorian's Tracinda made a run at General Motors in 2006. He began buying GM shares in the spring of 2005. But that dance led nowhere. GM's management and Kerkorian just didn't get along. Kerkorian had urged a global partnership among GM, NissanParts Motor and Renault USA. Didn't work.
• Chrysler takeover attempt: Kerkorian first invested in Chrysler in 1990 after meeting with the automaker's boss Lee Iacocca. Five years later, his stance as a passive investor gave way to a takeover bid when the company didn't perform as he'd hoped. Ultimately, he lost, but only after a long and rancorous fight.
• Ford stake: If Kerkorian is best known in Detroit for his failed takeover attempt of the old Chrysler in 1995 and his frustrated efforts to push GM into an alliance with Renault and Nissan Motor in 2006, he also played a part at the Blue Oval.
In 2008, Kerkorian's Tracinda had built up a 6.5% stake in Ford Motor But later in the year, Tracinda started selling off Ford shares. By the end of 2008, Tracinda had sold off all its Ford shares.
Tracinda said in a statement in the fall 2008 that "in light of current economic and market conditions, it sees unique value in the gaming and hospitality and oil and gas industries and has, therefore, decided to reallocate its resources and to focus on those industries."
Source: USAToday
His strategies roiled Detroit's auto and casino industries on multiple occasions. Here are some of his most memorable deals that solidified his reputation as an aggressive activist investor. He died Monday night at 98.
But he leaves a tremendous legacy, especially when it come to the auto industry. He touched each of Detroit's Big 3 automakers. Here's how:
• General Motors bid: Kerkorian's Tracinda made a run at General Motors in 2006. He began buying GM shares in the spring of 2005. But that dance led nowhere. GM's management and Kerkorian just didn't get along. Kerkorian had urged a global partnership among GM, NissanParts Motor and Renault USA. Didn't work.
• Chrysler takeover attempt: Kerkorian first invested in Chrysler in 1990 after meeting with the automaker's boss Lee Iacocca. Five years later, his stance as a passive investor gave way to a takeover bid when the company didn't perform as he'd hoped. Ultimately, he lost, but only after a long and rancorous fight.
• Ford stake: If Kerkorian is best known in Detroit for his failed takeover attempt of the old Chrysler in 1995 and his frustrated efforts to push GM into an alliance with Renault and Nissan Motor in 2006, he also played a part at the Blue Oval.
In 2008, Kerkorian's Tracinda had built up a 6.5% stake in Ford Motor But later in the year, Tracinda started selling off Ford shares. By the end of 2008, Tracinda had sold off all its Ford shares.
Tracinda said in a statement in the fall 2008 that "in light of current economic and market conditions, it sees unique value in the gaming and hospitality and oil and gas industries and has, therefore, decided to reallocate its resources and to focus on those industries."
Source: USAToday
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