Ford says its board is neutral about billionaire investor Kirk Kerkorian's offer to purchase up to 20 million shares of the automaker's common stock in a move to boost his ownership to 5.5 percent.

Ford says the decision was made in part because Kerkorian's Tracinda Corporation seeks a relatively small percentage of shares. It also notes Tracinda has said it believes Ford is an attractive investment and doesn't currently intend to acquire it or influence control over Ford's business.

The board's neutrality was revealed as Ford said it no longer expects to return to profitability by 2009. It is cutting North American production for the rest of this year as high gas prices and the weak economy continue to hurt sales.

Ford shares fell 64 cents, or more than 8 percent, to close at $7.16.