I think Kerkorian is just trying to buy SOMETHING. He's maneuvering on Motorola right now, too. I don't see any way they'll accept an offer that low.

I'm beginning to wonder if DaimlerChrysler have any intention of selling Chrysler at all, or if they are just using this as a ploy to boost the stock prices(which is working) until they can announce their own turnaround plan.

 

If this deal goes through, I'll be the first to bid Chrysler a fond farewell. I hope that somebody snatches up Jeep (and maybe Dodge) in the aftermath.

 

Daimler seems to actually intent in making sure whoever buys Chrysler doesn't cut it to pieces (no doubt alot of people in Daimler have a personal attachment to Chrysler), but I'm also aware that with the right lawyers, you can almost get out of any agreement.


For the record, I'm also actually wondering how sincere DaimlerChrysler is in selling off Chrysler. Although the stockholders are virturally forcing the management to sell them off, it seems that there are so many ties that's going to remain with any sale that Daimler will still have defacto control over Chrysler.

Why?

1. Consider the next LX vehicles (due within the next 2 years) will have even more parts shared with Mercedes than it does now.

2. Chrysler is developing a crossover that will share most components with a crossover Mercedes is developing.

3. The upcoming V6 Chrysler will have will be shared with Mercedes who is developing it jointly.

4. The only thing Chrysler will have that has nothing to do with the Daimler side of the house will be pickup trucks, Durangos, Vipers, and the Mitsubishi based front drivers including the PT, Caliber, and the upcoming small sedan and maybe a small coupe.

5. None of these plans are going to be easy or possible to change.

Whoever buys Chrysler will have to deal with Daimler at least till the next redone LX cars run their course. My guess, till the middle of next decade. So they will hardly be buying a company free and clear.

Based on this, I'd gamble to say that DaimlerChrysler is simply selling a large intrest in Chrysler, not so much buying Chrysler. Much like how Daimler unloaded alot of their shares in Mitsubishi, though they still have a significant investment in it.

Even if this is the case (which it probally is) Kerkorian's intrest is curious because he'd be restricted in what he could do (as pointed out, he isn't a long term investor). He Daimler would restrict him from dismembering the company, and Chrysler's assets are worth well over $4.4 billion. Jeep alone is woth $5-10 Billion, minimum.

But then again. That's what lawyers are for.