Updated from 12:42 p.m.
Jerry York, a representative of Kirk Kerkorian's Tracinda Corp., has stepped down from
board after the automaker's move to end talks about a potential alliance with
Tracinda, which owns about 9.9% of the automaker, also said in a
Securities and Exchange Commission
filing on Friday that it no longer plans to buy additional shares of GM.
Shares of GM recently were down $2.39, or 7.1, to $30.74.
On Wednesday, GM CEO Rick Wagoner and Nissan-Renault CEO Carlos Ghosn agreed to end negotiations for a global alliance, largely because of compensation GM was requesting as part of the deal. At the time, Wagoner indicated that the board's decision on the move was unanimous.
Tracinda, a major backer of the alliance, expressed disappointment with the move. The firm said in Friday's filing that GM "abruptly announced the termination of discussions regarding its proposed alliance with Renault and Nissan prior to the expiration of the time period originally established for the initial evaluation of the alliance and without the General Motors Board of Directors obtaining an independent evaluation of the alliance."
Last week, Tracinda indicated it planned to buy up to 12 million more shares of GM, which would put its stake above 10%.
York was installed on GM's board in February, and since that time the automaker ha slashed its dividend payment in half and agreed to sell majority stakes in its residential mortgage and financing businesses. The company also executed a massive employee-buyout plan, and its stock is now the biggest gainer on the
Dow Jones Industrial Average
for the year.