Thursday, October 16, 2008

Kerkorian pledges more MGM shares

Wall Street's latest twist, is "get the billionaire's" shares. Kirk Kerkorian, who had pledged 50 million of his MGM shares to BofA for a loan, now has pledged another 50 million shares, as the stock price has come down in both Ford and MGM.

His average on his 120 million shares of F, with the interest cost is about $7.50.

At a current price of $2.30 he is down over $600 million, which was the amount of the original credit line. He previously pledged his shares of F to the line.

Now Kirk has pledged another 50 million shares of MGM.

Look at the action in Delta Petroleum (DPTR 9.11) of which Kirk is another large holder.

It's Wall Street's version of get the billionaire's shares!

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