General Motors (GM) had thoughts of joining a three-way alliance with Renault SA of France and Nissan Motor Corp. (F) of Japan recently, after prodding by Kerkorian's investment company, Tracinda Corp. The failure of that alliance as well as a the resignation of Jerome York, a key Kerkorian adviser from the GM board, might be behind Kerkorian's divestiture of GM stocks.
York was quoted as saying he had "grave reservations" about GM's ability to compete against Asian automakers, according to this MSNBC.com article.
Prior to selling his shares Kerkorian owned almost 10 percent - 56 million shares - of the world's largest automaker. It is reported he sold his entire remaining investment in GM; 28 million shares worth more than $800 million.
GM has lost more than $3 billion in the first nine months of the year and continues to cut away at its U.S. work force in an attempt to cut costs, persuading about 35,000 hourly workers to leave under early retirement or buyout plans.
Read the full article here.
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