Tracinda Corporation Sells Kirk Kerkorian's Stake of Ford Stocks

Kirk Kerkorian, the billionaire investor, sold part of his shares in Ford Motor Company on Monday and looks to sell the rest of his stake in the near future.

The Tracinda Corporation, Kerkorian's investment company, said on Tuesday that it sold 7.3 million shares of Ford on Monday at a huge loss and intended to further reduce its remaining 6.09 percent stake.

Kerkorian, 91, began purchasing Ford stock in April, and had spent about $1 billion to accumulate an initial 6.49 percent stake in the automaker. With his remaining 133.5 million shares valued at $311 million, Mr. Kerkorian has lost two-thirds of his investment.

Kerkorian's investment in Ford has given resounding confidence to the ailing automaker, but the deal to sell his stock came soon after Ford's biggest rivals, Chrysler and GM, have begun merger talks.

The auto industry is amid a financial crisis, mainly due to high gasoline prices, a sharp decrease in consumer spending and a credit market that have made it difficult for Americans to receive car loans.

Vehicle sales in the United States fell 26.6 percent in September, the first month since 1993 when buyers bought less than 1 million new cars and trucks.

Ford's shares traded at $2.33 on Tuesday, but had recently fallen to as low as $1.88 a share.

Tracinda Corp. said it sold 7.3 million shares on Monday for about $17.7 million or an average of $2.43 a share. Ford shares were down 7 percent, to $2.16 Tuesday morning. General Motors shares were down 1.1 percent.

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