GM urged to tie up with Renault-Nissan
Kirk Kerkorian, the veteran corporate raider who has amassed a near 10 per cent stake in General Motors, has urged the world's biggest car maker to forge an alliance with Renault and Nissan.
News of Mr Kerkorian's initiative sent GM shares racing ahead on Wall Street yesterday on the prospect of a cost-cutting merger between the three giant car companies.
Mr Kerkorian's intervention was disclosed in a regulatory filing by his holding company Tracinda, urging GM to form a committee "to immediately and fully" explore the possibility of a tie-up with Renault-Nissan, both of which are run by Carlos Ghosn.
Under Mr Kerkorian's plan, which he said he had already discussed with Mr Ghosn, Nissan and Renault would buy into GM. The Tracinda letter to GM's chief executive Rick Wagoner said: "It is our understanding that Renault and Nissan are receptive to the concept of including General Motors in their partnership alliance and purchasing from GM a significant minority interest in the company."
Renault and Nissan declined to comment. GM said it had not received any approach from the two car makers but would consider the request from Mr Kerkorian, whose close adviser Jerry York sits on the company's board.
Analysts were surprised by Tracinda's move, which comes in the middle of a massive rationalisation programme by GM involving the closure of 12 plants.
Mr Ghosn is known as "Le Cost Killer" and is credited with turning around Nissan after taking over as chief executive and implementing savage cuts. Mr Kerkorian believes he could bring about the same transformation at GM, which lost $10.6bn (£5.7bn) last year.
- 1 The West has it totally wrong on Lee Kuan Yew
- 2 Watch: Man takes selfie every mile of 2,600 mile hike, creates amazing timelapse video
- 3 The day I starred in Only Fools and Horses
- 4 #FreeTheNipple: Women in Iceland bare breasts in solidarity with trolled student
- 5 Scientists have discovered a simple way to cook rice that dramatically cuts the calories
Ukip supporters are 55 or older, white and socially conservative, finds British Social Attitudes Report
JK Rowling responds to fan tweeting she 'can't see' Dumbledore being gay
Jeremy Clarkson sacked live: Alan Yentob 'wouldn't rule out' ex Top Gear host's BBC return
Revealed: Putin's army of pro-Kremlin bloggers
Germanwings plane crash: Co-pilot Andreas Lubitz wanted to 'do something people would remember him for'
The West has it totally wrong on Lee Kuan Yew
iJobs Money & Business
Negotiable: Recruitment Genius: To provide a prompt, friendly and efficient se...
Negotiable: Recruitment Genius: You will be the first point of contact for all...
£18000 - £24000 per annum + benefits: Ashdown Group: HR, Payroll & Benefits Of...
£35000 - £38000 per annum + benefits : Ashdown Group: A highly successful, int...