Kerkorian bids $4.5 billion for Chrysler
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Kerkorian bids $4.5 billion for Chrysler
http://money.cnn.com/2007/04/05/news...ex.htm?cnn=yes
April 5 2007: 1:46 PM EDT
NEW YORK (Reuters) -- Billionaire investor Kirk Kerkorian's Tracinda Group said Thursday it offered to acquire the Chrysler Group of DaimlerChrysler for $4.5 billion in cash.
Tracinda said it will offer the United Auto Workers union and Chrysler management the opportunity to participate as equity partners in the deal.
Billionaire investor Kirk Kerkorian is bidding to buy the troubled automaker Chrysler from its German parent.
DaimlerChrysler (Charts) acknowledged for the first time on Wednesday it was talking with prospective buyers about the Chrysler unit, but would not commit itself to selling the U.S. automaker.
Sources close to the situation have told Reuters that private equity groups Cerberus Capital Management and Blackstone Group, as well Canadian car parts maker Magna International, are the leading contenders to buy Chrysler.
Kerkorian had previously purchased a 9.9 percent stake in GM (Charts) in an attempt to influence management, but later backed down, selling his shares.
NEW YORK (Reuters) -- Billionaire investor Kirk Kerkorian's Tracinda Group said Thursday it offered to acquire the Chrysler Group of DaimlerChrysler for $4.5 billion in cash.
Tracinda said it will offer the United Auto Workers union and Chrysler management the opportunity to participate as equity partners in the deal.
Billionaire investor Kirk Kerkorian is bidding to buy the troubled automaker Chrysler from its German parent.
DaimlerChrysler (Charts) acknowledged for the first time on Wednesday it was talking with prospective buyers about the Chrysler unit, but would not commit itself to selling the U.S. automaker.
Sources close to the situation have told Reuters that private equity groups Cerberus Capital Management and Blackstone Group, as well Canadian car parts maker Magna International, are the leading contenders to buy Chrysler.
Kerkorian had previously purchased a 9.9 percent stake in GM (Charts) in an attempt to influence management, but later backed down, selling his shares.
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Sometimes I think Cerberus might have their hands full just trying to keep GMAC profitable over the next few years.
Last edited by johnsocal; Apr 5, 2007 at 02:55 PM.
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GMAC for the most part is very healthy. It's the subprime portion of GMAC-Rescap (which I work for until the end of this month) that has had a tough year. I'm no market analyst, but I don't think GMAC proper is in any impending danger.
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Part of me would like to see Kerkorian actually succeed in buying Chrysler. It's pretty clear they are not going to survive in the long term on the path they are currently on; I'd like to see how an 'outsider' would shake things up and try to restructure the business. The only hesitation I'd have is that Kerkorian is not a long term investor, but then again, Chrysler's not really in a position to break up and sell in pieces so he'd pretty much have to make a go of it as a whole. It'd be an interesting experiment for GM and especially Ford to watch.
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Part of me would like to see Kerkorian actually succeed in buying Chrysler. It's pretty clear they are not going to survive in the long term on the path they are currently on; I'd like to see how an 'outsider' would shake things up and try to restructure the business. The only hesitation I'd have is that Kerkorian is not a long term investor, but then again, Chrysler's not really in a position to break up and sell in pieces so he'd pretty much have to make a go of it as a whole. It'd be an interesting experiment for GM and especially Ford to watch.
I am with mastrdrver. I would like to see what Magna Corp. would do with it. It certainly understands at least part of the auto business and would have a vested intrest in keeping Chrysler healthy in the long term. Besides I would like to see how a Canadian Auto company would do.
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One thing Kirk has going for him, at least it hasn't been reported that the other companies interested in Chrysler havn't done, is talk to the UAW. I have a bad feeling that Kirk is going to sweet talk the UAW into supporting them. That would be a bad thing for just about everyone.