Ford's (F) Downfall Threatens Kerkorian's MGM Fortunes
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Billionaire investor Kirk Kerkorian is running into trouble with his majority stake in MGM (NYSE: MGM) due to the floundering of his Ford Motor (NYSE: F) investment.
Kerkorian pledged another 50 million shares of his MGM stock to back a $600 million credit line taken out with Bank of America that was used to buy shares in Ford stock, which have since plummeted. Kerkorian has now pledged a total of 100 million MGM shares to cover the Ford share losses. The 100 million shares is 67% of his total shares in MGM and 36% of MGM total shares outstanding.
Kerkorian's Tracinda owns 140.8 million Ford shares, or 6.43%, which is down 62% YTD. Shares of MGM are down 82% YTD.
A spokesperson for Kirk Kerkorian's Tracinda Corp said there was no margin call on the BofA loan.
Kerkorian pledged another 50 million shares of his MGM stock to back a $600 million credit line taken out with Bank of America that was used to buy shares in Ford stock, which have since plummeted. Kerkorian has now pledged a total of 100 million MGM shares to cover the Ford share losses. The 100 million shares is 67% of his total shares in MGM and 36% of MGM total shares outstanding.
Kerkorian's Tracinda owns 140.8 million Ford shares, or 6.43%, which is down 62% YTD. Shares of MGM are down 82% YTD.
A spokesperson for Kirk Kerkorian's Tracinda Corp said there was no margin call on the BofA loan.
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