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General Motors is seeking a sizeable capital injection from outside investors as a possible alternative to a deal with Chrysler, the carmaker’s smaller Detroit-based rival.

Such an investment would be along the lines of Warren Buffett’s recent purchases of minority stakes in General Electric and Goldman Sachs.

http://www.ft.com/cms/s/0/747b7020-9fb5-11dd-a3fa-000077b07658.html
 

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Kerkorian is dumping Ford shares, because he borrowed $600 million, using his MGM Grand shares as collateral.................. and his MGM Grand shares have tanked by 82%. I would image that the lender probably wants their money back, due to the devaluation.

All is not as it seems.
 

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General Motors is seeking a sizeable capital injection from outside investors as a possible alternative to a deal with Chrysler, the carmaker’s smaller Detroit-based rival.

Such an investment would be along the lines of Warren Buffett’s recent purchases of minority stakes in General Electric and Goldman Sachs.

http://www.ft.com/cms/s/0/747b7020-9fb5-11dd-a3fa-000077b07658.html
Good luck with that. GM is going to have to convince some well-heeled investor that they are worth the risk. I'm not saying they're not, but most people outside of GM fans I don't think would be interested. I guess we will see.
 

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Ok, so the cash burn is up, and they run out in mid 2009 - whats the big deal ?
 

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Ford is in better shape then GM yet Kerkorian is dumping all his Ford shares at a huge loss. The odds of someone investing billions into GM is slim (unless it's the government).
Kerkorian dumping his shares (again) does not surprise me at all. Captain kirk may have made money on MGM and other businesses but the old fart doesn't know anything about the automotive industry at all. I still remember the little scheme he had to have renault-nissan accquire a 20% stake in GM and how he acted like a spoiled child when his plan fell apart and he decided to sell all of his shares

:soapbox:

Ok rant over back to the topic at hand the last thing GM needs is to absorb Chrysler. The access to chryslers cash pile is not worth the long term consequences of such a deal
 

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Kerkorian dumping his shares (again) does not surprise me at all. Captain kirk may have made money on MGM and other businesses but the old fart doesn't know anything about the automotive industry at all. I still remember the little scheme he had to have renault-nissan accquire a 20% stake in GM and how he acted like a spoiled child when his plan fell apart and he decided to sell all of his shares

:soapbox:

Ok rant over back to the topic at hand the last thing GM needs is to absorb Chrysler. The access to chryslers cash pile is not worth the long term consequences of such a deal
He actually lost money with MGM. All three times that he purchased them, he sold them for a loss. He would have made a better return just sticking those millions in the S&P500.
 
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