CHRYSLER, KERKORIAN SETTLE.Byline: Robyn Meredith The New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of Times Chrysler Corp. settled its 15-month battle Thursday with Kirk Kerkorian Kerkor "Kirk" Kerkorian (Armenian: Քըրք Քըրքորյան) (born June 6, 1917) is an American billionaire, and president/CEO of Tracinda Corporation, his private holding , the Las Vegas Las Vegas (läs vā`gəs), city (1990 pop. 258,295), seat of Clark co., S Nev.; inc. 1911. It is the largest city in Nevada and the center of one of the fastest-growing urban areas in the United States. billionaire who had been unhappy with the automaker's stock price and was campaigning for the company to give shareholders some of the billions of dollars it had in reserve. Kerkorian lost the fight over the funds, but won a seat on the Chrysler board for his representative. However, he and his allies are likely to have little influence over the direction of Chrysler, the nation's No. 3 automaker. Kerkorian agreed for five years to go along with the majority of other Chrysler shareholders in any votes. He also agreed not to try to take control of the company, and to no longer turn to former Chrysler chairman Lee Iacocca for counsel and support. In fact, the settlement calls for Kerkorian and Iacocca to part company. What Kerkorian got was a pledge from Chrysler to double, to $2 billion, the value of the shares that the company expects to buy back from all stockholders this year in an effort to increase the stock price, and to repurchase an additional $1 billion worth of stock next year. But the agreement said that these buybacks would be made from cash generated by Chrysler's auto sales Auto Sales The major producers of domestic automobiles report sales monthly. These numbers are seasonally adjusted by the U.S. Department of Commerce and are available to the public one to five business days after the end of each month. and would not rob the company's cash reserves Cash reserves See: Cash investments cash reserves Investment funds that are held in short-term assets such as Treasury bills and certificates of deposit until more permanent investment opportunities are available. , which management has insisted it needs to tide it over in the next recession. In fact, Chrysler said it could cancel the buybacks if it was not making enough money. Chrysler announced the settlement minutes before the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. closed. Trading was halted at $56.75, down $1.625 a share on a day when the other big American auto companies also declined. CAPTION(S): PHOTO Photo (Color) KERKORIAN |
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