Chrysler to be bought-out???

[Charger Aficionado]

This is GOOD NEWS!!!     I can't wait until he has the Charger Re-Designed!




NEW YORK - 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."

DaimlerChrysler shares climbed $3.81, or 4.7 percent, to close at $84.80 on the
New York Stock Exchange after rising to a new 52-week high of $84.90 earlier in the session.

California-based Tracinda said its offer is subject to Chrysler reaching a new collective bargaining agreement with the
United Auto Workers as well as a deal with DaimlerChrysler on sharing the estimated $22 billion unfunded pension liabilities and health care costs of Chrysler retirees.

A message seeking comment was left Thursday with a UAW spokesman.

Russell Phillips, union steward for UAW Local 1700, said word of a possible sale began filtering through the Sterling Heights, Mich., assembly plant Thursday afternoon. Phillips, a 20-year Chrysler employee, said he thinks the UAW would be interested in listening to such an offer from Tracinda.

"It would be very interesting if we can get something like that so we can help our members," Phillips said. "A lot will depend on how open they are going to be with the UAW and if they really are willing to sit down and talk with us."

Analysts said the deal would be difficult for Kerkorian to pull off because of his turbulent history with Chrysler and the size of the company's large legacy costs.

"I'm not sure what Kirk brings to the party except he can't help himself when it comes to playing with Chrysler," said David Healy, an analyst with Burnham Securities.

But David Cole, chairman of the Center for Automotive Research in Ann Arbor, Mich., said any deal would require an arrangement with labor on the legacy costs and noted that Tracinda adviser Jerome York has a long history of working with the UAW.

Tracinda said it's ready to start a more extensive review of Chrysler's financial books right away and believes it could complete it within 60 days.

Han Tjan, head of corporate communications for DaimlerChrysler in New York, said the German-American automaker is talking with partners about a sale and that the chairman is satisfied with the process.

"All of our options are still open. For us to talk about (Tracinda) is speculation," Tjan said.

At least two groups in addition to Tracinda and Magna reportedly have expressed interest in Auburn Hills, Mich.-based Chrysler. Cerberus Capital Management LLC and a consortium of investors led by Blackstone Group each have reviewed Chrysler's finances and are expected to make bids.

"As a matter of policy, we can offer no confirmation on any bid submission by Cerberus," said Cerberus spokeswoman J.J. Rissi. John Ford, a spokesman for Blackstone, said he could not comment on Tracinda's bid.

A message seeking comment was also left with officials from Magna.

In a letter to DaimlerChrysler Chairman Dieter Zetsche, Tracinda said it has been following the developments at Chrysler closely and has been studying available materials about the automaker.

"Having been a major shareholder for over a decade we are very familiar with both Chrysler and the automotive industry, and have come to believe, all factors considered, that a private ownership approach is in the best interests of all Chrysler constituencies," said the letter, signed by York, a former Chrysler Corp. executive.

The letter said it would be easier for a privately owned company to take a long-term approach "to build Chrysler into a robust and lasting, stand-alone entity."

Kerkorian long has had interest in automotive companies.

Late last year, he dumped the last block of what once was a nearly 10 percent share of General Motors Corp., the world's largest automaker.

He had pushed for an alliance between GM, Nissan and Renault SA. GM's board voted to explore the possibility, but after three months of discussion, the idea was scrapped. York served as Tracinda's representative on the GM board but stepped down after the alliance talks fell apart.

Kerkorian, whose Tracinda was Chrysler's largest shareholder at the time of its 1998 merger with DaimlerBenz, sued the combined company in 2000. He claimed that Daimler-Benz engineered a takeover of Chrysler, then cheated him out of billions by casting the deal as a merger of equals. A federal judge rejected his claim.

Tracinda, which is named after Kerkorian's daughters, Tracy and Linda, has the majority stake in the casino and hotel operator MGM Mirage Inc.

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http://news.yahoo.com/s/ap/20070406/ap_on_bi_ge/chrysler_kerkorian

[69bronzeT5]

Im not sure about this guy though....he tried to buy out GM and some of his ideas included selling off Hummer and killing off Pontiac

[Silver R/T]

I guess still better than Chinaman building us Chargers

[Arthu®]

You two are clueless aren't you? Anyways I believe that Daimler is looking at a little bit more than 4 billion USD for Chrysler. I would say between the 4 and 9 billion, this depends a lot on how the new owner would appreciates the health care costs, etc of the Chrysler group. I wonder who eventually ends up with it, the automobile industry is risky business I wouldn't see myself investing it...

Arthur

[Forza]

Im not sure about this guy though....he tried to buy out GM and some of his ideas included selling off Hummer and killing off Pontiac

Sounds pretty good to me.

[Dodge Don]

Magna, the Canadian auto parts powerhouse bid $4.7 Billion.......a tad more than
kirk.

[Ghoste]

And if Chrysler becomes a Canadian owned company, we promise to try and understand the US market a lot better than the Germans. 

[bull]

And if Chrysler becomes a Canadian owned company, we promise to try and understand the US market a lot better than the Germans. 

Would the owners manuals be written in both English and French?

[Dodge Don]

And if Chrysler becomes a Canadian owned company, we promise to try and understand the US market a lot better than the Germans. 

Would the owners manuals be written in both English and French?

They already are....

[quapman]

Kerkorian, Kevorkian...WHO???

....but seriously, this guy is nothing but a corporate raider who has made his billions buying, slicing, dicing and re-selling companies, usually at the cost of thousands of middle-class jobs. Yes, better than being bought by a Chinese company, but not much better. Hell, I'd be happy if GM bought it. At least it would be an American company again. The europeans sure don't understand the U.S. car market. Dodge Nitro Caliber Vibe WHAT???

Just my 2 humble blue collar cents.

[Brock Samson]

"Vibe"?..

[bull]

Like I said in the other thread about this, it must be nice to be able to make a $4.5 billion CASH offer for anything.

[Big Lebowski]

   Dodge Nitro + an award for the uglyest vehicle ever made = Unhappy Germans. Ok next time find a design team that isn't blind, retarded, ignorant (Trevor Creed), stubborn, and out of touch with reality in general.

[Dan T]

And if Chrysler becomes a Canadian owned company, we promise to try and understand the US market a lot better than the Germans. 

We already build all their good cars anyway, including the upcoming Challenger:)

[69bronzeT5]

   Dodge Nitro + an award for the uglyest vehicle ever made = Unhappy Germans. Ok next time find a design team that isn't blind, retarded, ignorant (Trevor Creed), stubborn, and out of touch with reality in general.

The freaking Nitro looks like an old German army tank (Ive been playing Call Of Duty 3 alot lately )

[ChargerSG]

 

[Dodge Don]

Kerkorian, Kevorkian...WHO???

....but seriously, this guy is nothing but a corporate raider who has made his billions buying, slicing, dicing and re-selling companies, usually at the cost of thousands of middle-class jobs. Yes, better than being bought by a Chinese company, but not much better. Hell, I'd be happy if GM bought it. At least it would be an American company again. The europeans sure don't understand the U.S. car market. Dodge Nitro Caliber Vibe WHAT???

Just my 2 humble blue collar cents.

I'm a Mopar guy forever, but honestly couldn't care less who Chrysler is bought buy.....or if they vanished altogether. It's of no major material consequence to me. And frankly, it is the traditional US automakers that "don't get it" which is why they are being creamed by what you call "foreign" automakers. In business it is kill or be killed (like nature) and frankly they are the prey these days. They can't even make a car that meets the emissions requirements in most of the major international markets.

[bull]

And if Chrysler becomes a Canadian owned company, we promise to try and understand the US market a lot better than the Germans. 

Would the owners manuals be written in both English and French?

They already are....

I meant in other countries besides Canada. It was what we call a joke down here in the mainland.

[41husk]

it will be interesting to see what comes of the new challenger.

[Dodge Don]

And if Chrysler becomes a Canadian owned company, we promise to try and understand the US market a lot better than the Germans. 

Would the owners manuals be written in both English and French?

They already are....

I meant in other countries besides Canada. It was what we call a joke down here in the mainland.

Trust me...I got it. It's called sarcasm.

[DC_1]

If Kerkorian buys DCX it is for the simple purpose to make money....he will cut it up,slice it up, dice it up and eliminate anything and everyone he can in the process. If Magna buys it it will also want to make money but their founder Frank Stronach who has a huge ego wants Chrysler because he wants to build cars. He is a immigrant tool and die maker who came to Canada with nothing and built one of the largest automotive parts companies in the world. He is very anti union and has built his company into a 22 billion dollar company while keeping them out. It will be interesting if he does find a way to pull it off to see what will become of the union long term at Chrysler.

[Charger Aficionado]

I'm sure Kerkorian buys and sells-off small companies, but why would he screw-up one of the Big 3???  I bet he'd re-stabilize it?

[Ghoste]

So if Kevorkian buys it up only to tear it apart, who's on the hook for warranty costs of vehicles sold during this melee?

[TeeWJay426]

For the uninformed, this is NOT Kerkorian's first attempt at buying Chrysler... his first try was viewed as 'hostile', because of his reputation as a corporate raider; that's when the so-called 'merger-of-equals' proposed by the Daimler honchos was viewed as the preferable way to go... 

[Todd Wilson]

It is an interesting thing going on with Chrysler I must admit.  Chrysler was in very good shape when the germans took over. They had billions in cash and had trimmed the fat with closing plants and upgrading. Kerkorian I doubt will slice and dice the company but he will get it going again good and then do something like a merger or take over to line his pockets more. He was pissed because he didnt get to play ball in 98 when the so called merger happened. The German Chrysler merger was for the cash and in there somewhere was an auto maker.


The magna deal is probably the better deal for the company in general. Theres a lot more to think about then just the 4.? billion dollar cash offer for the company.   Theres the debt Chrysler has now along with the retirement and health care costs of the employee's and retired peoiple. I hear thats in the 20 billion dollar range.  Probably the reason why GM couldnt really play ball as the cash offer is the cheap part.

As for the comments about ugly cars is ones own opinions but its not 1969 any more. Things have changed and so have vehicles.  Some of you blind charger owners are still pissed because the new charger is a 4 door. Lets face it the new Mustang is hot  but its not really doing much for Ford. I myself am not in the position to buy a brand new vehicle because its cool and bad ass. I got to think about 3$+ a gallon gas and hauling a family around. I'd say for 90% of the world right now people are buying a new vehicle for transportation. And thats it. You line up all the new cars from all the makers in their respective price ranges and they all look pretty much all the same.



As for the foreign makers kicking butt  this was true  but a long time ago. They are still making good cars but their prices are  up there where they no longer are good affordable cars.  The Big 3 as a whole has increased the quality in their vehicles in the last 15-18 years. I think GM has stumbled some this last 6-8 years with quality. I personally have owned 4 brand new Chrysler products in 12 years and they all have been very good vehicles. One was totaled in a wreck and one was traded in as it was too small for a family car.



Theres a lot to look at for any of the outfits looking at buying chrysler.






Todd