Kerkorian Starts Tender for Ford Shares

Ford was recently down 1.4% at $8.09.
By TSC Staff ,

Kirk Kerkorian's Tracinda has started its cash tender offer to acquire up to 20 million shares of

Ford

(F) - Get Report

for $8.50 each.

In April, Kerkorian said he owned 100 million Ford shares, or 4.7% of the total outstanding, that he had started buying earlier in the month at an average cost of $6.91 a share. Tracinda said at the time it would make an offer of $8.50 a share for up to 20 million additional shares.

The offer represented a 13.3% premium to Ford's closing price the day before the announcement. Ford was recently down 1.4% at $8.09.

Kerkorian has previously waged activist battles at both

General Motors

(GM) - Get Report

and Chrysler. In both of those situations, he didn't gain control of the company. In the case of Ford, Tracinda has given no indication it plans to become anything more than a passive shareholder.

GM was recently down 3.6%. Elsewhere in the auto sector,

Honda

(HMC) - Get Report

was losing 1.7%, but

Toyota

(TM) - Get Report

was tacking on 0.1%.

This article was written by a staff member of TheStreet.com.

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