Kerkorian dilutes GM stake again

Kirk Kerkorian is unhappy with the GM board

Billionaire investor Kirk Kerkorian has further reduced his stake in General Motors (GM), sending the troubled firm's shares down yet further.

Mr Kerkorian said he had diluted his holding in GM from 7.4% to 4.9% by selling 14 million shares.

Mr Kerkorian, who has been at odds with GM over its strategy to revive its struggling US business, cut his investment from 9.9% only last week.

GM shares fell by almost 1% to $29.23 upon the news.

Backing away?

Last month Mr Kerkorian dropped plans to buy more GM shares due to his displeasure at the firm ending alliance talks with Renault and Nissan.

Mr Kerkorian - who amassed his fortune in the casino, airline and movie businesses - has been an outspoken critic of GM's management which is trying to turn around the company.

Maybe he realizes he cannot create the controversy he needs to change the board's direction Kevin Reale AMR Research

In its latest effort to raise finance, GM confirmed it had completed the sale of a 51% stake in its financing arm to a group of private equity firms.

The deal is expected to raise up to $14bn for GM, which is facing huge costs relating to an extensive job-cutting and plant closing programme.

Analysts said Mr Kerkorian may now be resigned to being unable to wield any influence over the firm's strategy.

"Maybe he realizes he cannot create the controversy he needs to change the board's direction," said AMR Research analyst Kevin Reale.

GM has been troubled by rising competition, falling sales and increasing debts in recent years.

GM bosses have expressed confidence that their turnaround plan - which involves cutting 34,000 jobs - is on schedule.

GM will publish its sales figures for November on Friday.