Kerkorian Makes Surprise $4.5B Bid for Chrysler

Billionaire investor Kirk Kerkorian is prepared to make an unsolicited bid to buy the Chrysler Group for $4.5 billion and will offer $100 million to DaimlerChrysler AG for exclusive negotiating rights on the sale, the Detroit News has learned.

Kerkorian's Tracinda Corp. investment firm notified DaimlerChrysler of the offer in letters to the German automaker's CEO, Dieter Zetsche, and its supervisory board.

Kerkorian, who tried to buy Chrysler in 1995, said he is prepared to make a provisional offer to acquire the U.S. automaker that includes offering a "substantial portion of equity" to the United Auto Workers as part a solution to cut health-care costs.

To gain exclusive negotiating rights, Kekrorian is prepared to give DaimlerChrysler $100 million -- $25 million of which the company could keep if a deal does not materialize.


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chuck717 - 4/5/2007 3:06:37 PM

0 Boost

Big of him, 4 billion what a steal??? I suggest if Chrysler is led by his group all Chrysler employees Google AMC that is their fate. Yes MBZ is desperate to dump this turkey but they already lost 32 billion on this misstep at least sell the darn company to someone giving them a fighting chance. This deal just leads the corp to a at dawn hanging?

no1listensanyway - 4/5/2007 4:49:57 PM

-1 Boost

4.5 billion? Thats it? Interesting turn of events.

XYZZ - 4/8/2007 8:38:08 AM

+1 Boost

this brings to mind: remember when GM was working on a deal to buy up Fiat? and had to PAY add'l big bucks besides the initial advances, JUST TO BACK OUT?

everyone thot what a bunch of idiots at gm to blow so much cash for NOTHING!

considering MB's wanting to dump chrysler now after already losing billions, maybe it WAS smart of gm to just cut their losses and run!