SOUTHFIELD, MICHIGAN (Bloomberg) - Billionaire Kirk Kerkorian said Ford Motor Co. stockholders offered to sell 50 times the amount of shares he sought to buy, suggesting a lack of confidence in CEO Alan Mulally's turnaround plan.

Investors tendered 1.02 billion shares, or almost half of Ford's 2.2 billion shares outstanding, sending the stock down as much as 5.4 percent in New York trading. Mr. Kerkorian's Tracinda Corp. said it will buy 20 million shares, or almost two percent of the stock submitted, for $8.50 each.

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

Ford shares have lost about 21 percent since the Dearborn, Michigan-based automaker abandoned its goal last month of making a profit next year. A surge in oil prices and a slowing economy are forcing customers to rein in purchases of gasoline-guzzling trucks, which account for more than half of Ford's US sales.

Mr. Kerkorian, 91, is offering $170 million for the stock, for 34 percent more than Monday's closing price. The stock declined 22 cents to $6.14 at 11am in New York Stock Exchange composite trading, after falling to $6.02.

"Obviously, 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."

Ford, General Motors Corp. and Chrysler LLC were outsold for the first time in their home market by Asian automakers last month. The US companies have relied more on pick-up 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 US 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 yesterday. "The Ford team remains focused on executing our plan to transform Ford into a lean global enterprise delivering profitable growth for all."

Mr. Kerkorian's offer expired on Monday at 5pm New York time.

Tracinda yesterday 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 has lost $15.3 billion in the past two years, said on May 22 that a slowing US economy and rising fuel and materials prices are prompting new cuts in jobs and production. Ford plans to dismiss an undetermined number of US employees by August 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 at a Lincoln-Mercury dealership in Garden City, Michigan.