Updated from 9:28 a.m. EDT
surged Friday after holder Kirk Kerkorian said two big foreign automakers would consider buying a minority stake.
"It is our understanding that Renault S.A. and Nissan Motor Co. are receptive to the concept of including General Motors in their partnership-alliance and purchasing from General Motors a significant minority interest in the company," Kerkorian said in a letter to Rick Wagoner, GM's CEO.
In recent trading, GM shares were up $1.95, or 7.1%, to $29.39. They have now gained 25% since the start of 2006.
The letter was registered with the
Securities and Exchange Commission
in a 13D filing. Kerkorian, the Las Vegas billionaire who owns 10% of GM, urged the company to entertain the proposal.
"The Renault-Nissan partnership-alliance has created tremendous engineering, manufacturing and marketing synergies, resulting in substantial benefits and cost savings to both Renault and Nissan," the letter said.
"We believe that participating in a global partnership-alliance with Renault and Nissan could enable General Motors to realize substantial synergies and cost savings and thereby greatly benefit the company and enhance shareholder value. Accordingly, we urge the board of directors to form a committee to immediately and fully explore this opportunity together with management."
Nissan, Japan's second largest automaker, is 44% owned by Renault. Renault CEO Carlos Ghosn was credited with keeping Nissan out of bankruptcy when he was installed as its first non-Japanese CEO in 1999.