The fortunes of battered car maker General Motors continue to get a boost from Kirk Kirkorian, one of the best known US corporate raiders. The 87-year-old billionaire investor is now offering to buy as many as 28 million GM shares. Kirkorian’s interest has caused the value of the shares to rise 18% since 4 May. His investment firm, Tracinda, currently owns 3.9% of the company, but he has said he wants to more than double his stake to over 8.8%.
Kirkorian started buying GM’s shares late last month when they fell to their lowest level in more than 20 years. That was after the world’s largest car manufacturer revealed it had made its biggest quarterly loss since it came close to bankruptcy in 1992. Kirkorian, who is the majority owner of the casino and hotel operator MGM Mirage, seems unworried by the fact that GM and its financial subsidiary, GMAC have 227 billion euros of debt.