Kirk Kerkorian is building up a sizeable stake in GM

A regulatory filing showed that he spent $262.8m (�147m) via his firm Tracinda Corp, increasing his stake in the company to 9.9% from 7.8%.

Kerkorian has been an outspoken critic of GM management, and speculation is rising that he may try and fight for control of the firm's boardroom.

News of the investment sent GM shares higher in after-hours trading.

The latest investment takes Kerkorian's stake in GM back up to nearly 10% after he sold a tranche of shares in December for tax purposes.

'Deep trouble'

Kerkorian, who made his billions in the casino, airline and movie businesses, first started amassing his stake in GM last year.

He originally said the stake was only for investment purposes, but last September he said he may seek a seat on GM's board.

Earlier this month, his adviser Jerome York called on GM to step up its efforts to turn itself around.

"When a company is in deep trouble - and make no mistake, GM is at the present time - there are only so many hours in the day for management to effectively focus on and fix things," he said.

The carmaker will report its fourth-quarter earnings later on Thursday.