Billionaire Kirk Kerkorian recently put in a tender offer to buy 20 million additional shares of Ford (F). Since the May 9th offer, Ford has fallen 21% below his offer price and 18% overall. Kerkorian has a “get out of jail free” card if he wants it: once the stock tanked more than 10%, the offer could have been pulled. But Kerkorian and his Tracinda investment company are not bailing. They believe in Ford and Chief Executive Alan Mulally’s turnaround plan. At least someone does. Bloomberg:
The decision marks Kerkorian’s latest show of support for Ford Chief Executive Officer Alan Mulally since Tracinda disclosed a stake of 100 million shares in April. Kerkorian last week said he added $100 million to a Bank of America loan he is using to buy shares in the second-largest U.S. automaker the day after Ford abandoned a goal of a 2009 profit….
The automaker, which has lost $15.3 billion since 2005, said May 22 that a slowing U.S. economy and rising fuel and materials prices are prompting new cuts in jobs and production. Ford said it may dismiss U.S. salaried workers to pare expenses.