Nissan shares largely unchanged by GM reports

TOKYO - Shares of Nissan Motor Co. were slightly higher in early trade on Monday, reacting little to news that billionaire investor Kirk Kerkorian urged General Motors to consider a three-way partnership with Nissan and Renault SA.

The proposal by Kerkorian, who owns about 10 per cent of GM through Tracinda Corp., must first receive support by the US auto maker's board to be considered by Nissan and Renault.

Nissan and Renault, whose 7-year alliance has been touted as a rare example of a successful equity partnership in the industry, both said their boards would meet separately to consider the request. Renault's board could meet as early as Monday, a French minister said, while Nissan said its board would meet soon.

"The Renault-Nissan Alliance is an open partnership, which has never been restricted to two partners," Nissan said in a statement. "Under the right circumstances and with the appropriate partners, the alliance could be expanded further."

A source familiar with the situation has said that Carlos Ghosn, chief executive of both companies, expressed interest in acquiring a stake of up to 20 per cent in the world's largest auto maker at a dinner with Kerkorian several days ago.

Shares in Nissan, Japan's second-largest automaker, were up 0.32 per cent at ¥1254 as of 1.12pm NZ time. The benchmark Nikkei average was up 0.30 per cent.

Renault has a 44 per cent stake in Nissan, which in turn owns 15 per cent of the French car maker.

- REUTERS