Kerkorian’s back in the Chrysler race
Twelve years after a previous attempt to acquire the automaker, billionaire Kirk Kerkorian has bid $4.5 billion for Chrysler. But if anyone's going to stand in his way, it could be the auto workers union.
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.
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