Kerkorian: Fell short of the mark
Kerkorian's Tracinda Corp. concluded its tender offer for General Motors stock on Tuesday, June 7. And the meager results were "somewhat surprising," in the words of automotive analyst Himanshu Patel of J.P. Morgan.
Tracinda had sought 28 million shares, which would have brought its stake in GM to 8.9 percent. But the response was underwhelming, suggesting that shareholders think GM stock has some upside potential.
Kerkorian's company says it will wind up buying 18,926,557 shares, giving it about 7.2 percent of GM.
The sticking point? Tracinda stuck to its initial offer of $31 per share, even though GM's share price -- buoyed by Tracinda's offer -- traded above that price at several points while the tender offer was in effect.
Patel, and others, wonder if Tracinda will raise its offer to reach its goal. But the poker-faced Kerkorian wasn't tipping his hand late last week.