This should be good news for the beleaguered automaker. Kirk has already lost a bundle on paper and he needs to do something to make that money back.
Analysts have said Kerkorian's presence on the board could lead to drastic restructuring measures such as plant closings and job cuts, in part because his shares have lost so much value. When Kerkorian acquired 18.9 million shares in June, he paid $31 apiece. On Tuesday, GM shares were up 65 cents to close at $23.04 on the New York Stock Exchange. They have traded in a 52-week range of $20.60 to $40.82.
So it looks like he has lost about $151 million on paper from that June trade alone. This could be a good time to buy the stock since we have a billionaire on the hook for multi-millions in losses looking to shake things up by being on the board. Could be a good buy at these depressed levels. I have added it to my watch list already.
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