June 10 (Bloomberg) -- Ford Motor Co. stockholders offered to sell half of the company to billionaire Kirk Kerkorian on growing concern Chief Executive Officer Alan Mulally will fail to restore profit as oil surges and the U.S. economy slows.

Investors tendered 1.02 billion shares, or almost half of Ford's 2.2 billion shares outstanding, to Kerkorian, who will buy 20 million shares at $8.50 apiece. Ford dropped 3.8 percent in New York trading.

``The market is saying $8.50 is one hell of a price for the next few years,'' said Sean McAlinden, an economist with the Center for Automotive Research in Ann Arbor, Michigan. ``I don't think you are going to see $10 a share or $9 a share until deep into 2011.''

Record oil prices and a cooling economy are forcing customers to rein in purchases of gasoline-guzzling trucks, which account for more than half of Ford's sales. Ford's stock lost 22 percent since the Dearborn, Michigan-based carmaker gave up its goal last month of making a profit in 2009.

Kerkorian, 91, is offering $170 million for the stock, for 34 percent more than yesterday's closing price. The purchase will raise his stake in the automaker to 5.5 percent.

Ford declined 24 cents to $6.12 at 4 p.m. in New York Stock Exchange composite trading.

Bleak Mood

``It appears almost like it's an act of desperation,'' Dennis Virag, president of Automotive Consulting Group in Ann Arbor, Michigan, said of the shares tendered to Kerkorian. The ``mood is bleak'' for ``any stakeholder in Ford, from employees to shareholders.''

Ford, General Motors Corp. and Chrysler LLC were outsold for the first time in their home market by Asian automakers last month. The U.S. companies have relied more on pickup trucks and sport-utility vehicles for profits, and sales of those models shriveled as gasoline prices climbed toward $4 a gallon.

Ford's F-Series pickup was unseated as the top-selling vehicle in the U.S. in May by two car models from Honda Motor Co. and two from Toyota Motor Corp. That was the first time a car outsold the F-Series during a month since Ford's own Taurus did so in December 1992. The automaker is increasing production of cars and slashing output of trucks.

``The response from investors is understandable given that the offer represented a significant premium over Ford's current share price,'' Ford said in an e-mailed statement today. ``The Ford team remains focused on executing our plan to transform Ford into a lean global enterprise delivering profitable growth for all.''

Long-Term Bet

Kerkorian's offer expired yesterday at 5 p.m. New York time.

``It speaks to the long-term nature of Kerkorian's bet,'' said Bernie McGinn, president of McGinn Investment Management Inc. in Alexandria, Virginia, which owns 300,000 Ford shares. ``It speaks to the difference between those who see the story and those who see it longer term and are willing to take the bumps.''

McGinn said investors in other companies would probably respond similarly given the offer premium.

``It's a very itchy market right now, so I could see some shareholders taking the money,'' said Alan Bromberg, who teaches securities law at Southern Methodist University's law school in Dallas. ``It's still a pretty unusual situation,'' he said, citing Kerkorian's optimism about Ford.

Preliminary Number

Tracinda today called the number of shares tendered preliminary and subject to verification. The investment company said in a statement it would disclose the final figure of shares that are verified and not withdrawn.

Tracinda disclosed in April that it had acquired 100 million shares, or 4.6 percent.

``We welcome Tracinda and thank them for their confidence in our plan,'' Chairman William Clay Ford Jr. said at the automaker's May 8 shareholders meeting. The company's board took a neutral stance on the offer.

The automaker, which lost $15.3 billion in the past two years, said May 22 that a slowing U.S. economy and rising fuel and materials prices are prompting new cuts in jobs and production. Ford plans to dismiss an undetermined number of U.S. employees by Aug. 1 as part of a plan to cut salaried worker expenses by 15 percent.

``We decided to be proactive -- it was important to act swiftly and deal with a change in circumstances,'' Executive Vice President Mark Fields told reporters late yesterday at a Lincoln-Mercury dealership in Garden City, Michigan.

Activist Shareholder

Las Vegas-based Kerkorian has a history as an activist shareholder at Chrysler Corp. and GM. Tracinda made a hostile bid for Chrysler in 1995, and pressed for major changes at GM a decade later.

Kerkorian sold his GM shares in 2006 after the automaker rejected his plan for an alliance with Renault SA and Nissan Motor Co. He also unsuccessfully bid against Cerberus Capital Management LP to buy Chrysler last year.

``We do not have a present intent to acquire or influence control over the business of Ford,'' Tracinda said when it began the tender offer for the 20 million shares on May 9.

Jerry York, a Kerkorian adviser, told trade publication Automotive News in an interview published May 1 that Ford should shed its Mercury and Volvo brands. Volvo is the company's sole remaining European-based brand after Ford divested Aston Martin last year and Jaguar and Land Rover this month.

The Ford family controls 40 percent of voting power at the automaker through 70.9 million Class B shares. Bill Ford, 51, and his cousin Edsel Ford, 59, have seats on the company's board.

To contact the reporter on this story: Bill Koenig in Southfield, Michigan at wkoenig@bloomberg.net

Last Updated: June 10, 2008 16:14 EDT