GM Urged To Consider Alliance With Nissan
June 30, 2006
DETROIT (Reuters) — One of the largest investors in General Motors
(GM) on Friday urged the world's largest automaker to consider a three-way partnership with Nissan Motor and Renault.
In a letter to GM Chief Executive Rick Wagoner, Tracinda, the investment arm for billionaire investor Kirk Kerkorian, suggested the automaker form a committee to "immediately and fully explore" the possibility of a partnership under which Nissan and Renault would buy a "significant minority interest" in GM.
"We believe that participating in a global partnership-alliance with Renault and Nissan could enable General Motors to realize substantial synergies and cost savings and thereby greatly benefit the company and enhance shareholder value," Tracinda wrote in the letter.
GM shares surged in premarket trade on the news.
6/30/2006 09:53:00 AM
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