Billionare Kerkorian offers $870M for 28M GM Shares, Changes ahead?
05-05-2005, 07:41 AM
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Billionare Kerkorian offers $870M for 28M GM Shares, Changes ahead? Interesting read. Friend of mine had even mentioned Toyota was rumored on the web to be looking @ buying GM.
http://www.detnews.com/2005/autosins...A01-172472.htm
http://www.detnews.com/2005/autosins...A01-172472.htm
05-05-2005, 08:42 AM
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Originally Posted by sb427f-car
Friend of mine had even mentioned Toyota was rumored on the web to be looking @ buying GM.
05-05-2005, 09:53 AM
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Originally Posted by FutureFbodowner
WTF Toyota? I dont know if that would good or bad.
I don't think it would nessecarily be bad. GM and Toyota have been partnering on projects for a while (Toyota Matrix / Pontiac Vibe, for example). Toyota is very well managed and they focus extremly well on what they do best, quality. Perhaps the company that refined the 6 Sigma theory and one of only a VERY small few manufacturing firms in the world that are 6 Sigma. The odds are GM will do one of several things...Cut some brands in the short and or long run (though I hope not); Totaly restructure and sell off or spin off the failing or lagging brands (which is a decent idea as it gives more autonomy to those brands, prime example is Delphi from GM, though not a great example cause I still maintain Delphi = crap); Or they will fail miserably if they try to turn around and will be acquired by someone looking for a bargin. Betting in the stock market is perhaps more risky than Texas Hold 'em vs. the house @ Ceaser's Palace. My point being, if GM doesn't turn a 4th q profit without an accounting scandel, I fear the last scenario will play itself out within a year from this year's end. (Now, I'm not a market strategist, just a gut feeling).
Spinning off the brands is probably the best way to do it, imo. They can be structured properly to leverage the current assets without much initial investment. They have market share and good products, but they just need to be made/marketed better. Shareholders would be happy as they'd more than likely get proportional shares in the spun companies and you cut most of the beurocracy (sp?) out of the company. Very few companies opperate well @ the size of GM (and actually the only one that I can think of this large is GE, in terms of market cap, and organizational structure and they are even more diversified than GM). Just my $.02.