Bid Made For Chrysler
April 5, 2007
Kerkorian Makes Offer for Chrysler
Thursday April 5, 7:54 pm ET
By Ken Thomas, Associated Press Writer
Kirk Kerkorian's Investment Company Tracinda Makes $4.5 Billion Cash Offer for Chrysler
NEW YORK (AP) -- Billionaire investor Kirk Kerkorian, who lost out in Chrysler's 1998 merger with Daimler-Benz, wants to buy the troubled automaker back from its now-unhappy German owners.
Kerkorian's wholly owned investment company, Tracinda Corp., on Thursday made a $4.5 billion cash offer for DaimlerChrysler AG's U.S.-based Chrysler unit.
A deal would put Kerkorian in charge of Chrysler a decade after he claims he was tricked out of potentially billions of dollars in the 1998 deal in which Germany's Daimler-Benz joined with Chrysler in the so-called "merger of equals."
Long an active investor in automakers, the 89-year-old former movie mogul once offered $22.8 billion for Chrysler in an unsuccessful 1995 takeover bid.
Kerkorian's bid, about one-fifth of what he offered in 1995, reflects the falling fortunes of Chrysler Group, which lost $1.5 billion last year and has announced 13,000 job cuts in North America and reduced production.
The offer disclosed Thursday from Tracinda is slightly lower than at least one competing bid from Canadian auto-parts supplier Magna International Inc., worth a reported $4.7 billion.
Tracinda said it would place a $100 million deposit for the right to exclusive bargaining rights.
Tracinda in a statement said it wants "to build and strengthen" the troubled automaker and "will offer the UAW and Chrysler management the opportunity to participate as equity partners in the transaction."
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4/05/2007 10:46:00 PM
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