Kerkorian’s back in the Chrysler race

Scott Jagow Apr 6, 2007
HTML EMBED:
COPY

Kerkorian’s back in the Chrysler race

Scott Jagow Apr 6, 2007
HTML EMBED:
COPY

TEXT OF STORY

SCOTT JAGOW: Billionaire investor Kirk Kerkorian is making another run at Chrysler. Yesterday, he pitched a $4.5 billion offer.

Kerkorian tried to get Chrysler 12 years ago but he was rejected, and Germany’s Daimler wound up buying the company three years later.

Analyst John McElroy says the wild card in any deal for Chrysler could be the auto workers union.

JOHN MCELROY: The union’s gonna be very leery of a private equity firm of any sort coming in. If you say Kerkorian’s telling them he’ll make them an equity partner, what does that mean? Maybe he’ll give them a board seat. I don’t see where the union’s gonna kick in any money to go buy Chrysler.

Kerkorian’s bid is a tad lower than one from a Canadian auto-parts supplier.

Two other private equity firms are also interested in Chrysler.

There’s a lot happening in the world.  Through it all, Marketplace is here for you. 

You rely on Marketplace to break down the world’s events and tell you how it affects you in a fact-based, approachable way. We rely on your financial support to keep making that possible. 

Your donation today powers the independent journalism that you rely on. For just $5/month, you can help sustain Marketplace so we can keep reporting on the things that matter to you.