Kerkorian decides not to up GM stake as rep resigns from board

0 Comments | AFP, October, 2006

DETROIT, United States (AFP) — General Motor's largest private shareholder backed out of plans to up his stake Friday as his representative on the board resigned after the automaker ended alliance talks with Renault-Nissan. Kirk Kerkorian, whose Tracinda Corp. owns a 9.9 percent stake in GM, said in regulatory filings he no longer intended to up his stake to 12 percent of the company and indicated he was reviewing his investment in the automaker.

Tracinda cited GM's decision to halt alliance discussions before the end of a 90-day review and the board's failure to obtain an independent evaluation of the alliance. It said it would consider disposing of shares "based on market and general economic conditions, the business affairs and financial condition of General Motors," and...