Ford Asks Hiroshima to Buy Mazda Stake

The automaker has asked Hiroshima Bank to buy some of Ford's shares of Mazda, according to Japanese media reports.

Author:: TSC Staff
Publish date:: Oct 22, 2008 1:36 AM EDT

Ford

(F) - Get Report

has asked

Hiroshima Bank

to buy some of the automaker's shares of

Mazda

, according to Japanese media reports.

Hiroshima is expected to purchase a stake, although the size and price of the stake hasn't been determined, reports the

Nikkei

newspaper.

Kyodo

reports Ford will sell up to 5% of Mazda to Hiroshima Bank.

It was reported last week that Ford is finalizing plans to sell shares in Mazda to about 20 Japanese firms, and will likely outline the deal by next month. Ford is considering selling some of its 33.4% stake in Mazda as it struggles with weakening sales and the global credit crunch.

Billionaire investor Kirk Kerkorian on Tuesday said in a regulatory filing that he's ditching his stake in Ford. Kerkorian's Tracinda Corp. on Monday sold 7.3 million shares of Ford for an average sale price of $2.43 a share, according to the filing with the

Securities Exchange Commission

The company also intends to further pare its holdings, including possibly selling its entire 133.5 million-share stake, or 6.1%, of the automaker, "depending upon market conditions and available sales prices," Tracinda said.

Shares of Ford closed Tuesday at $2.17.