Sept. 3 (Bloomberg) -- Billionaire investor Kirk Kerkorian's Tracinda Corp. settled U.S. regulatory claims that the company misleadingly suggested it might increase a stake in General Motors Corp. in 2006 while looking to sell the stock.

Tracinda wasn't fined and resolved the Securities and Exchange Commission's civil complaint by pledging to refrain from similar misconduct, the agency said today. The Beverly Hills, California-based firm broke securities rules while disclosing the sale of 14 million shares, saying publicly it might buy more stock after privately approaching a brokerage to propose a larger sale two days earlier, the SEC said.

The investment company's statement ``was materially misleading'' because ``there was only a remote possibility that it would buy any GM stock at that time,'' the regulator said.

Kerkorian, 91, was GM's biggest individual shareholder in 2006 while pressuring the automaker to strike an alliance with Renault SA and Nissan Motor Co. A month after GM rejected Kerkorian's proposal, Tracinda began unloading its holding. Securities laws require large stakeholders to disclose their plans so other investors can evaluate ownership changes.

Tracinda didn't admit or deny wrongdoing in the SEC accord. Kerkorian, the firm's sole owner, wasn't accused of misconduct. Tom Johnson, a spokesman for the company, said he couldn't immediately comment.

Plan Curtailed

Tracinda decided to sell half of its 56 million GM shares in mid-November of 2006, according to the SEC. The plan was curtailed Nov. 20 after a brokerage offered less money than Tracinda expected. Instead, the firm sold 14 million shares.

When disclosing that sale two days later, the company said it might decide to ``to acquire or dispose of additional shares,'' depending on market conditions, the economy and GM's financial condition, the SEC wrote in its complaint. The firm sold its remaining 42 million shares by Nov. 30.

``The case shows that where we develop the evidence that somebody had a plan, we will bring appropriate charges,'' said Kenneth Lench, an SEC enforcement attorney in Washington who oversaw the agency's probe.

Kerkorian in 1995 mounted an unsuccessful takeover bid for Chrysler Corp. He also unsuccessfully bid against Cerberus Capital Management LP to buy Chrysler LLC last year. Tracinda holds 140.8 million shares, or 6.4 percent, of Ford Motor Co. Kerkorian is the third-largest holder of Ford stock, according to data compiled by Bloomberg.

To contact the reporter on this story: David Scheer in New York at dscheer@bloomberg.net.

Last Updated: September 3, 2008 13:24 EDT