GM prepares to fight Kirk Kerkorian

Oct. 18, 2006 at 3:16 PM
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DETROIT, Oct. 18 (UPI) -- General Motors Corp. is preparing for a possible takeover fight with activist shareholder Kirk Kerkorian, a California investor who owns 9.9 percent of GM.

In the wake of Kerkorian's representative leaving the GM board, an action that followed the collapse of alliance talks with Renault SA-Nissan Motor Co., the Michigan automaker has hired two investment banking firms and changed its bylaws to make it tougher for Kerkorian to elect a slate of directors or put strategic issues to a direct vote of GM stockholders, the Detroit News said Wednesday.

"I don't know if (GM) is expecting an attack, but I would say they are preparing for one," said Peter Henning, a Wayne State University law professor and former enforcement officer at the U.S. Securities and Exchange Commission.

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