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Kerkorian's GM bid looms over shareholders

June 4, 2005 at 8:38 PM   |   Comments

DETROIT, June 4 (UPI) -- Kirk Kerkorian's bid to buy shares of General Motors ends the same day as the car company's shareholder meeting in Wilmington, Del.

Although a lawyer for Kerkorian has said his client intends to be a passive investor holding shares only for investment purposes.

However, GM's bylaws lack many corporate defensive measures that would prevent Kerkorian from forcing his own candidates on the company's board of directors, according to a report by analyst Brian Johnson of Sanford Bernstein.

However, Kerkorian's plans may divert attention from GM's 12.6 percent drop in May in U.S. vehicle sales that has resulted in vehicle production in North America being cut by 10 percent or 100,000 cars and trucks, reported the Detroit Free Press Saturday.

© 2005 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.
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