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ReprintsAnalyst: Magna and partner make a bid for Chrysler
Bradford Wernle
Automotive News
March 23, 2007 - 9:05 am ET
UPDATED: 3/23/07 3:01 P.M.
Canadian supplier Magna International Inc. has joined with a private equity group to make an offer to buy the Chrysler group from DaimlerChrysler, according to Brett Hoselton, an analyst for KeyBanc Capital Markets. Magna and its partner have made an offer to buy Chrysler for $4.6 billion to $4.7 billion, Hoselton says in his March 23 report. He cites sources at Magna but does not name the private equity partner. According to Hoselton, Magna's stake would be worth 20 to 25 percent of the Chrysler group. "While MGA views its offer as low and unlikely to prevail, the company also views it as an opportunity to purchase an inexpensive stake in the automaker should the other buyers retreat," Hoselton wrote. Magna also is undertaking a strategic review of its interiors business, which includes "all options including operational improvements or the possibility of selling the business entirely," Hoselton added. DaimlerChrysler is Magna's largest customer, generating about 25 percent of the supplier's revenue. Magna spokeswoman Tracy Fuerst today responded to questions about the deal with a prepared statement. "It is imperative that Magna has a full understanding of the situation regarding the future of the Chrysler group," the statement said. "Therefore, we continue to review potential alternatives regarding the future of the Chrysler Group. Discussions about this matter are strictly confidential and will not be disclosed publicly, nor will the company comment on speculation related to those discussions." You may e-mail Bradford Wernle at bwernle@crain.com |
You can reach Bradford Wernle at bwernle@crain.com.
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