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Kerkorian aide to demand GM dividend cut

Kerkorian aide to demand GM dividend cut
Jan 10, 2006, 15:05 GMT

NEW YORK, NY, United States (UPI) -- An adviser to California investor Kirk Kerkorian, who controls the third-largest block of General Motors Corp. stock, will demand a 50-percent cut in dividends.

Jerry York, who once ran Chrysler`s finances and now works for Kerkorian`s investment company Tracinda Corp., was expected to issue the demand Tuesday in a speech to stock analysts, the Detroit News said.

Kerkorian, who holds 7.8 percent in GM, apparently thinks there is not enough urgency among GM managers about the corporation`s financial woes. In the first nine months of last year, GM lost nearly $5 billion.

By cutting its $2 yearly dividend in half the company would save $500 million a year. Kerkorian also is believed to be concerned that GM`s plans to shut factories and lay off workers is too little too late, the newspaper said.

The billionaire casino mogul and York have been meeting privately with GM`s outside directors voicing these concerns.


LINK: http://news.monstersandcritics.com/business/article_1074751.php/Kerkorian_aide_to_demand_GM_dividend...