Kerkorian ups stake in Ford

CHICAGO (AFP) — Investors rushed to help billionaire Kirk Kerkorian build a 5.5 percent stake in Ford Motor Co., his Tracinda Corp said Tuesday.

Nearly half of Ford's 2.2 million outstanding shares were tendered after Kerkorian made an offer of 8.50 dollars per share in order to sweep up 20 million shares at a cost of 170 million dollars.

The offer represents about a 35 percent premium over current share prices and was oversubscribed by more than 50 times.

"The response from investors is understandable given that the offer represents a significant premium over Ford's current share price," Ford spokesman Mark Truby told AFP.

Truby declined to comment on expectations that Kerkorian would use his stake to pressure the company to deepen its restructuring plan in the face of declining sales.

"We're going to continue to focus on our plan and bringing our company back ...