It’s turnaround time for two major U.S. companies.
An adviser to Kirk Kerkorian, the billionaire investor whose Tracinda Corp. owns a 7.8% stake in U.S. carmaker General Motors Corp., called on the ailing auto group Tuesday, Jan. 10, to undertake some serious restructuring moves, including selling off several units; eliminating select product offerings; cutting compensation to employees and investors across the board; and seeking profitability over increasing market share.
Jerome York, a one-time chief financial officer for Chrysler Corp., said the country’s top auto maker should consider unloading its Saab, Isuzu and Hummer brands, and advocated the company publicizing a three-year turnaround plan that investors could monitor. Additionally, York called a bankruptcy filing for GM, something about which rumors have swirled for months, the worst idea possible for the company.
In other turnaround news, after its massive corporate overhaul last year, Palo Alto, Calif.-based Agilent Technologies Inc. has turned its sights to acquisitions in its core asset groups to improve its annual revenue growth and fill in key holes in its product offerings.
Having sold off its semiconductor unit, to buyout shops Kohlberg Kravis Roberts & Co. and Silver Lake Partners for a cool $2.7 billion last year, along with unloading its stake in Lumileds Lighting International BV to Royal Philips Electronics NV for $1 billion more, the scientific instruments company said it is ready to focus on acquisitions and financial growth. —Carolyn Murphy
GM gets earful on austerity
Agilent ready for purchases
KKR, Silver Lake bet $2.7B on chips
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