DETROIT (Reuters) - Tracinda Corp., the investment vehicle owned by billionaire Kirk Kerkorian, said on Thursday it has sent a letter to DaimlerChrysler (DCXGn.DE) offering to acquire the money-losing Chrysler unit for $4.5 billion.


In a letter to DaimlerChrysler's supervisory board, Tracinda said that it is willing to post a $100 million deposit as a sign of good faith.

The offer is contingent on Chrysler working out a favorable labor contract with the United Auto Workers union, the letter said.

Tracinda also said it will offer the UAW and Chrysler management the opportunity to participate as equity partners in the deal.

DaimlerChrysler acknowledged for the first time on Wednesday that it was talking with prospective buyers about the Chrysler unit.

Tracinda said in its letter that it seeks exclusive rights to conduct due diligence on Chrysler, which it believes could be completed within 60 days.

Sources close to the situation have told Reuters that private equity groups Cerberus Capital Management (CBS.UL) and Blackstone Group (BG.UL) plus Canadian car parts group Magna International Inc. (Toronto:MGA.TO - news) are all possible candidates to take over Chrysler.

Kerkorian had previously held a stake as high as 9.9 percent in General Motors Corp. (NYSE:GM - news) but sold off all of his investment in the company last year following the automaker's rejection of a three-way deal with Nissan Motor Co. (7201.T) and Renault SA.

The GM-Nissan-Renault tie-up was proposed by Kerkorian.

I read the title as "Koreans offers to buy Chrysler", and I go :O

I read the title as "Koreans offers to buy Chrysler", and I go :O
they can. ;)

How much is chrysler loosing a year?

they can. ;)

I know they can but why would they? that's the question that i go:eek2::D

From what I understand higher offers are on the table vs the 4.5b Kerkorian offer.
Could it be that Chrysler may be a domestic brand again?

From what I understand higher offers are on the table vs the 4.5b Kerkorian offer.
Could it be that Chrysler may be a domestic brand again?
Actually I would love to see Hyundai purchase Chrysler but that apparently is not in the works.

Personally, I would love to see MB dump Chrysler as soon as possible.

I think it only makes sense for a non-auto company to purchase Chrysler like this situation. If Hyundai bought Chrysler, it would only sink Hyundai financially and they would lose the focus that has turned them into a great company.

Could it be that Chrysler may be a domestic brand again?

It hasn't stopped being a domestic brand. Where are Chrysler products designed and built?

People should remember that it was more of a merger than a buyout by Daimler-Benz. If it was simply a purchase, it would have remained "Daimler-Benz" with more divisions rather than becoming Daimler-Chrysler.

I think it only makes sense for a non-auto company to purchase Chrysler like this situation. If Hyundai bought Chrysler, it would only sink Hyundai financially and they would lose the focus that has turned them into a great company.



It hasn't stopped being a domestic brand. Where are Chrysler products designed and built?

People should remember that it was more of a merger than a buyout by Daimler-Benz. If it was simply a purchase, it would have remained "Daimler-Benz" with more divisions rather than becoming Daimler-Chrysler.

Wrong, Chrysler IS a foreign auto company. The S&P dropped them years ago as only mostly US companies can be listed on there. There was no merger which explains why Kerkorian tried to sue in the first place. The name was added to appease those in this country that would otherwise be upset at the foreign acquisition. Designing a car and building a car has nothing to do with whether a car is domestic or not. Take Toyota as an example.

The components of the S&P 500 are selected by committee. This is similar to the Dow 30, but different from others such as the Russell 1000, which are strictly rules-based.

The index does include a handful (11 as of September 19, 2006) of non-U.S. companies. This group includes both formerly American companies that are now incorporated outside of the United States, but which were grandfathered and allowed to remain in the S&P 500 after their expatriation, and companies that have never been incorporated in the United States. Notably, after the merger(?) of Daimler-Benz and Chrysler, the S&P did not allow the newly-created German aktiengesellschaft (corporation) to be in the index.

I'll give you $4.50 for it.

Personally, I would love to see MB dump Chrysler as soon as possible.

Personally I hope they do seperate as Mercedes has only sucked the marrow out of Chrysler and now is dumping them with no idea how to fix THEIR problems or Chryslers.

They can only hold on to their image so long. I hope Chyrsler revives itself and builds Mercedes compeitiors that kick its arse!

Wrong, Chrysler IS a foreign auto company. The S&P dropped them years ago as only mostly US companies can be listed on there. There was no merger which explains why Kerkorian tried to sue in the first place. The name was added to appease those in this country that would otherwise be upset at the foreign acquisition. Designing a car and building a car has nothing to do with whether a car is domestic or not. Take Toyota as an example.

Truer words have never been said. I just want to see Chrysler succeed.

I may be wrong here, but wasn't Kirk Kerkorian once rumored to be considering an outright buy of Chrysler the last time they were in trouble - in the pre-MB days? I seem to remember his being a "white knight" coming in to rescue the beleaguered automaker some years ago.

Something in the back of my mind keeps nudging me that Kerkorian was once a racer himself - at the millionaire club racer level, sponsoring and I believe actually participating in the sport as far back as the Carrera PanAmericana races of the '50's. He has had a long association with the industry and given his passion for fast (not to say flashy) cars, he could be an enthusiast's dream for Chrysler. The last time the MoPar folks were on the auction block, I know Kerkorian had a lot of fan support - the thinking was that if given the helm of the corporation, he would lead them toward a more performance-oriented product line.

Can anyone confirm this?

so since Kerkorian can't have GM...he wants Chrysler..

Kerkorian is a weasel....and an overly greedy one at that. He is anything BUT a car guy like most of us are. He cares nothing for auto companies, their employees, or the vehicles they produce. He is the classic, profit-at-all costs, big-time investor....even worse then Trump. All he wants to do (the past has demonstrated this time and time again) is to get his hands on big blocks of company stock and seats on company boards so he can manipulate the stock prices, reap as much as possible, pad his insatiable pockets, turn around and re-sell the stock, and then be off on his merry way. He tried to do the same thing recently at GM and had some success doing it. Now he wants to do it again at Chrysler.

The guy disgusts me, and I don't even enjoy discussing him. But I wanted to bring this up so that people aren't fooled by his "offers". And if there ever was an excuse for taxes on capital gains, he is it.

Thus is the world of business. Very rare does someone take over, bid, acquire, or want anything in business unless there is a self absorbed need involved.