York probably thinks he can better serve Kirk Kerkorian as an outsider -- just as he did when Kerkorian tried taking over Chrysler (DCX).
So I'm thinking more fireworks are coming.
Plus, York has a big financial incentive to see that GM's shares rise. The Wall Street Journal pointed out over the weekend that York's deal with Kerkorian provides that York will receive about $2.2 million for each point GM shares go up, as measured in mid-2009.
Yet what if I'm wrong -- and Kerkorian exits the GM picture?
Well, the stock would definitely come under short term selling pressure.
But you know I first recommended GM in April 2005 at $26.75 per share. And that was BEFORE Kekorian came into the picture.
I always liked him involved because, as I stated several times, his presence shakes things up. It has to a certain degree already and could do so even more. But investing in GM was never a play on Kerkorian.
If Tracinda Corp. ends up dumping its 9.9% holding, the stock will go down. If so, I anticipate patiently holding my position through any sell off.
GM 1-yr chart: