Excerpt from our Wall Street Breakfast, a one-page summary of this morning's key market-moving and stock-moving stories:
Kerkorian to reduce his stake in GM [LA Times]
Summary: Kirk Kerkorian's (pictured) Tracinda Corp. announced the sale of a quarter or its stake in General Motors - 14 million shares - sending shares lower by 4.7% Wednesday. The move would bring Kerkorian pre-tax profits of $38.6 million in addition to freeing up $423 million for other investments. Nearly simultaneously to announcing its GM sell-off, Kerkorian's Tracinda announced plans to acquire an additional 15 million more shares of MGM Mirage - upping its stake from 56% to nearly 62% - for an average price of $55 a share, or 12% over its price during the time of the announcement. Shares rose 10.6% as a result.
Related links: Media coverage: WSJ. Commentary: • GM's Cost-Cutting Story: Will Kerkorian Cut And Run? • Kerkorian Dumps GM Shares Jerry York Quits GM Board - Is a Kerkorian Fire Sale Next? • With the GM Merger a No Go, What Kerkorian's Next Move? • Kirk Kerkorian's Next Move? GM's Guess is as Good as Mine • MGM Delivers Earnings In Spades.
Potentially impacted stocks and ETFs: General Motors (NYSE:GM), MGM Mirage (NYSE:MGM).
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