Kerkorian May Want GM Board Seat

He files to raise his stake in the automaker to 9.9%.
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Shares of

General Motors

(GM) - Get Report

swerved Wednesday after Kirk Kerkorian's Tracinda Corp. said it will raise its stake in the automaker and seek board representation.

In a filing with the

Securities and Exchange Commission

, Tracinda said it plans to raise its 9.5% stake to 9.9%. Also, while the shares are for investment purposes, Kerkorian may talk to the automaker "concerning possible representation on its board of directors."

The famous Las Vegas tycoon first reported a stake in GM in May. At the time, the stock was in in free fall after the company warned of unexpected losses for 2005. But it found support when Kerkorian offered to buy up to 28 million shares at $31 apiece, and it has rarely gone below that level in the ensuing months despite several debt downgrades.

Kerkorian's intentions remain unclear, but his persistence in the face of these challenges remains the one wild card in the GM story that Wall Street appears to like.

After spiking when the Kerkorian news hit, shares of GM were recently down 7 cents to $31.01.