Tracinda Corporation, the private investment vehicle of former Chrysler shareholder Kirk Kerkorian, yesterday announced that it intends to make a cash tender offer for up to 20,000,000 shares in Ford Motor Company at a price of $8.50 per share, a 13.3% premium over Ford¡¯s closing price on 25th April and 38.7% higher than Ford¡¯s closing stock price on 2nd April, when Tracinda began buying Ford shares.

The prospective share acquisition represents about 1% of Ford¡¯s ordinary shares, and would take Tracinda¡¯s stake to about 5.6%. Tracinda said Ford¡¯s management was starting to achieve ¡°highly meaningful traction¡± in its turnaround efforts ¨C a perception supported by Ford¡¯s announcement last week of profitable 1st quarter results.

Notice of Kirkorian¡¯s share offer was carried by The Detroit Free Press yesterday.