Tracinda begins $8.50-per-share tender offer for up to 20 million shares of Ford

By Lisa Kerner

Charlotte, N.C., May 9 - Kirk Kerkorian's Tracinda Corp. began an $8.50-per-share cash tender offer for up to 20 million shares of common stock, or about 1% of the shares outstanding, of Ford Motor Co.

The offer is slated to end at 5 p.m. ET on June 9, a Tracinda news release said.

According to Tracinda, the offer price is a 13.3% premium over Ford's closing stock price of $7.50 on April 25, the last trading day before the investor announced its plans to hold the offer, and a 38.7% premium over Ford's closing stock price of $6.13 on April 2, the day Tracinda began accumulating shares in the company.

It was previously reported that Kerkorian currently owns 100 million shares, or some 4.7% of Ford's outstanding shares, which were purchased at an average cost of $6.91 per share.

If the tender offer is fully subscribed, Tracinda will beneficially own 120 million shares, or 5.6%, of the Dearborn, Mich.-based automaker, the investor said.

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