1.
U.S. markets recover from steep losses
LAS VEGAS, Oct. 17 (UPI) -- Billionaire Kirk Kerkorian has put up 50 million more shares of his Las Vegas casino MGM Mirage to back a major purchase in Ford Motor Co., records show.
Kerkorian's Tracinda Corp. expanded its holdings in Ford this summer to 6.43 percent of the troubled company, purchasing 140 million shares.
Ford's stock has fallen from $8.50 per share when Tracinda completed a 20 million share tender offer in June to a current price of about $2.27 a share, the Detroit News reported Friday.
So far, Kerkorian has lost about $675 million on the investment. But, shares of MGM Mirage have also plummeted, causing the collateral he used for a $600 million Bank of America line of credit in the Ford purchase to fall in value.
This year, MGM Mirage shares have fallen from $81.60 a share to about $14.40 a share, the News reported.
A Securities and Exchange filing said Kerkorian had pledged the additional collateral, the News reported.
"He had to put up additional capital for his existing Ford shares," Burnham Securities Inc. analyst David Healy said. "He was anticipating the margin call by putting up more shares as collateral."
|
|
|
|
|
|
| Additional Business News Stories | |
ANCHORAGE, Alaska, May 24 (UPI) --
Officials at BP said the spill of an estimated 4,200 gallons of crude oil and associated water was contained at a site at the Prudhoe Bay field in Alaska.
|
OTTAWA, May 24 (UPI) --
A planned shakeup in the command structure of Canada's 68,000-strong armed forces will save costs and also respond to criticism of government performance over the planned Canadian acquisition of the Joint Strike Fighter program.
|
First-time buyers are driving the expectations that a recovery has begun. Their numbers and market share are growing despite financing roadblocks and competition with investors for entry-level homes. ...
|
It is a whole new ball of wax in Europe these days.
|
| Stories | Photos | People | Comments |
View Caption
