Investor suggests GM partner with Nissan/Renault (update #2)

Update #2: GM has convened an emergency board meeting to discuss a proposal by shareholder Kirk Kerkorian to form an alliance between GM and Renault-Nissan, say two Automotive News sources close to the board. Original Post: Kirk Kerkorian -- the billionaire investor who holds a 9.9 percent stake in General Motors -- has formally suggested the struggling automaker form an alliance with Nissan and Renault. Kerkorian's company, Tracinda, said in a letter to GM CEO Rick Wagoner that the partnership would "strengthen the competitive positions of all three companies." There are even reports that Renault/Nissan are considering buying a significant stake in General Motors and including the American automaker in their alliance. GM shares subsequently rose $3.64 to $31.08 in New York Stock Exchange trading. Shortly thereafter, GM issued a statement regarding the idea: "General Motors has received no offer or proposal from Renault/Nissan with respect to its participating in the Renault/Nissan Alliance, as suggested in the 13-D Filing made today by the Tracinda Corporation. The Tracinda request will be taken under advisement by the GM Board of Directors. At this time, we have no further comment."