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Dragon

Guess who's back, back again

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http://money.cnn.com/2007/04/05/news/compa...dex.htm?cnn=yes

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.

Shares of DaimlerChrysler (up $2.26 to $83.33, Charts) jumped nearly 3 percent in Thursday afternoon trading, and shares of rival General Motors (up $0.50 to $31.53, Charts) rallied as well.

Billionaire investor Kirk Kerkorian is bidding to buy the troubled automaker Chrysler from its German parent.

Tracinda said it will offer the United Auto Workers union and Chrysler management the opportunity to participate as equity partners in the deal.

DaimlerChrysler 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 in an attempt to influence management, but later backed down, selling his shares.

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HHHMMM..............WELL AT LEAST IT WOULD BE AN AMERICAN CO AGAIN. THE GERMANS KILLED IT

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Interesting. He might just be pissed off enough at Rick Wagoner and Bob Lutz and the rest of GM to set Chrysler straight.

However, I'd much prefer to see Frank Stronach and Magna head Chrysler, but I don't think Magna's Stronach will be able to pay the full price for Chrysler. If he did it with a partner, he'd likely have less influence than he would like, and Frank Stronach likes total control.

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Isn't he the one that got Chrysler Corp to merge with Daimler Benz to begin with?

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Interesting. He might just be pissed off enough at Rick Wagoner and Bob Lutz and the rest of GM to set Chrysler straight.

That's what I'm hoping for.

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Isn't he the one that got Chrysler Corp to merge with Daimler Benz to begin with?

he was against it.... cause he was planning on trying this years ago but then Daimler came in and stole the show.

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Interesting. He might just be pissed off enough at Rick Wagoner and Bob Lutz and the rest of GM to set Chrysler straight.

However, I'd much prefer to see Frank Stronach and Magna head Chrysler, but I don't think Magna's Stronach will be able to pay the full price for Chrysler. If he did it with a partner, he'd likely have less influence than he would like, and Frank Stronach likes total control.

i think its less the mooney they have and more the money they'll lose. If they buy chrysler, they lose their business with other car makers

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I was just going to post this.....

But anyway, this is good for GM and DaimlerBenz, bad for Chrysler.

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i think its less the mooney they have and more the money they'll lose. If they buy chrysler, they lose their business with other car makers

That is a good point, but keep in mind that automakers share so many parts and technologies with each other, that I think it'd likely be a non-issue. But then again...

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I was waiting for an "Escort's back.. tell a friend." :P

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The kid finally will get a toy to play with.
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I was waiting for an "Escort's back.. tell a friend." :P

i know Chrysler's made some mistakes, but I didn't they they'd be dumb enough to get eh escort from Ford :P

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sounds like the UAW would become part owners in Chrysler. Wonder how that/if that would affect relations with GM and Ford, especially in the contract negotiations coming up this year and beyond.

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i think its less the mooney they have and more the money they'll lose. If they buy chrysler, they lose their business with other car makers

1. It is about the money they have and wjere it should be allocated: From what I've read I am pretty sure Magna will partner up with a PE firm, and they'd end up with a minority stake in Chrysler. The rest will be owned by the PE firm, and part of it may eventually be floated if and when Chrysler turns around.

2. I don't think such a deal risks their business with other makers. Even in the long run if Magna can make the best proposal (cost-wise or otherwise) to an automaker looking to outsource a component or the manufacturing of some vehicle's systems (even whole vehicles - Magna already builds Chryslers/Jeeps in Austria), it won't matter if they own Chrysler or a chocolate cookie factory.

3. Re Tracinda: the man wants to own an automaker, so maybe Daimler should let him and sell Chrysler to him!

Edited by ZL-1
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