DETROIT -- Kirk Kerkorian's Tracinda Corp. officially filed its previously-announced tender offer of nearly $880 million to buy 28 million shares of General Motors.
Kerkorian also welcomed back an old friend.
Tracinda's offer, filed with the Securities and Exchange Commission on Monday, states that the company wishes to purchase the stock at $31 per share. Tracinda also announced it has hired Jerry York, Kerkorian's former Chrysler advisor, to assist Tracinda on the purchase.
York, who advised Kerkorian during his failed takeover of Chrysler Corp. in 1995, is on the board of directors at Apple Computer Inc., Exide Technologies and Tyco International Ltd. The Las Vegas, Nev., resident also is CEO of Harwinton Capital Corp., a private investment company he founded in 2000.
Kerkorian's offer, for the equivalent of nearly 5 percent of GM shares is scheduled to expire on June 7, unless extended.
If Tracinda does purchase all 28 million shares, Kerkorian will double his stake in GM to 50 million shares, or 8.84 percent.
In a filing Monday, Tracinda said that in April the company began purchasing GM shares in the open market, believing that the recent trading prices of the shares did not reflect the full value of the company.
Tracinda and an associate purchased a total of 22 million shares, or about 3.9 percent of GM shares, in the open market through May 3.
In the filing, Tracinda reiterated that it is acquiring the GM shares for investment purposes only, and does not presently intend to acquire or influence control over General Motors' business.
GM also kept its dividend intact Monday. GM said it would pay its regular 50-cent quarterly dividend June 10 to holders of record May 19. The announcement comes just days after rating agency Standard & Poor's lowered GM's bonds to "junk" status.
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