Tracinda Steps Up Pressure on GM

By Nat Worden

TheStreet.com Staff Reporter

1/10/2006 2:08 PM EST

Kirk Kerkorian's firm, Tracinda, called on General Motors (GM:NYSE - commentary - research - Cramer's Take) Tuesday to pare back its dividend payments to shareholders and adopt a comprehensive "equality of sacrifice" plan to revive its business.

The firm said its adviser, Jerome York, presented a plan for GM at the Society of Automotive Analysts that included cutting the company's annual dividend by 50%. York also is seeking a "substantial" reduction in payments and salaries for the company's top brass.

"The reality is that all constituencies -- the companies themselves, their investors, their unions and employees, and indeed the communities in which they live and work -- are in this together and should therefore work together towards the best collective solution," York said in a statement. "The [united Auto Workers union] will be a key partner in much of what GM must do, and we believe an 'equality of sacrifice' approach similar to what was done at Chrysler in 1980, and consistent with what Mr. Gettelfinger recently wrote in the Detroit News, will be necessary."

Full Article continued

URL: http://www.thestreet.com/_yahoo/stocks/aut...s/10261136.html

Nothing really new.... But a nice breath of fresh air at the same time.

So, one day soon Tracinda could own 24% of GM....

Not sure if that's a good thing or a bad thing.....

That would definately give them control (Unless I'm severely mistaken) which could mean a MASSIVE restructure.

Never thought I'd see the day that GM would be bought up in large quantities though... Then again, never thought I would see the day when america couldn't care less about GM's existence either.

Nothing really new.... But a nice breath of fresh air at the same time.

So, one day soon Tracinda could own 24% of GM....

Not sure if that's a good thing or a bad thing.....

That would definately give them control (Unless I'm severely mistaken) which could mean a MASSIVE restructure.

Never thought I'd see the day that GM would be bought up in large quantities though... Then again, never thought I would see the day when america couldn't care less about GM's existence either.

he cant reinvest for a while due to his selling of the 15 million shares, to appear as a loss... if he reinvests, it will void the loss...

he must wait for a bit of time to pass i'm not sure on the details..

i dont like that artical...

York is trigger happy about selling...

I think GM must walk a fine line to fix itself...

York is a bit more clubsy about it, i think... he's more interested in... consolidation, the pontiac buick desolving type of additude...

although GM sure has assets... but how much of the assets are going to be sold before GM has nothing left... i mean wagooner has been selling quite a bit recently...

I think that what you are refering to is a wash sale. It is for federal income tax purposes only and may apply to individuals only, I don't know. The sale and repurchase isn't prohibited, the caliming it as a tax right off is.

Here is a link to York's speech:

http://www.autonews.com/apps/pbcs.dll/arti...11/newsletter11

York wants to drop Saab and Hummer. Also, his favorite new GM cars are the Aura and the next Malibu.