Kerkorian Offers $4.5 Billion For Chrysler

Dumped his shares last time around; now is ready with cash
By Caroline Miller,  Newser Staff
Posted Apr 5, 2007 4:18 PM CDT
DaimlerChrysler AG   (Associated Press)
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(Newser) – Beverly Hills billionaire Kirk Kerkorian has offered to buy the Chrysler group for $4.5 billion. Kerkorian's investment company, Tracinda Corp., can pay cash for the ailing automotive giant, and is pitching an extra $100 mil for an exclusive two-month period to run due diligence. Tracinda told parent DaimlerChrysler it can work with both management and the UAW, which would have an equity stake.

Kerkorian, who made his bones in Vegas megaresorts, knows a thing or two about the automotive business. He was Chrysler's largest shareholder when DaimlerBenz acquired it in 1998, and ended up suing the conglomerate over the deal. He also dumped a massive holding in GM after a proposed merger with Renault went belly-up.