Filed under: Management, Industry, Ford Motor (F)
Kirk Kerkorian, who always has a tan and is a billionaire to boot, will end up with 5.5% of Ford (NYSE: F) when his current tender offer is done. If things don’t get superior at the vehicle company, he may use that massive chunk of stock to force some changes.
The founding Ford family owns 40% of the voting shares in Ford. For the time being, they have the ability to probably block any moves that Kerkorian would want to make. But, according to The Wall Street Journal (subscription required), “The next few weeks and months could show how well the team of the activist investor and the company’s management co-exist.”
They aren’t going to get along very well. Much of the trouble at Ford cannot be fixed by Ford. If gas prices stay high, the automobile market is going to stay tough for each company selling autos in the U.S. If a recessions spread to Europe and Asia, things will be even worse.
What Ford didn’t do in the past is also going to keep damaging sales. The firm still makes too many trucks and SUVs and designing enough smaller vehicles and putting them into production will take several quarters.
Kerkorian, and any other Ford shareholders for that matter, might ask the company to cut more costs. But, Ford may be close to the bone now, and it is impossible to state what there is left to take out of expenses without deeply damaging the company’s chance of ever getting its market share back.
Owning a lot of shares in Ford may get Kerkorian a voice, but he might not have anything to say.
Douglas A. McIntyre is an editor at 247wallst.com.
Entries (RSS)