DETROIT – Dissident General Motors Corp. (GM) shareholder Kirk Kerkorian said Friday that he will not acquire additional stock in the company, citing GM's decision not to pursue an alliance with Renault and Nissan.
The billionaire investor also said that his adviser, Jerome York, is resigning from the GM board.
Kerkorian, who controls a 9.9 percent stake in the company, has been pushing for more changes at GM to boost its share value. GM has said its own restructuring program that includes job cuts and plant closings is starting to show results.
GM shares tumbled on the news, losing $2.53, or 7.6 percent, to $30.60 in midday trading on the New York Stock Exchange.
In a filing with the Securities and Exchange Commission, Kerkorian's Tracinda Corp. said it would continue to review its investment in GM.
Kerkorian, who promoted the idea of GM joining Renault SA and Nissan Motor Co. (NSANY) in a broad alliance, had told the SEC last week that he was considering increasing his stake in GM to as much as 12 percent.