Magna wants only minority stake in Chrysler: report

Magna International chairman Frank Stronach smiles at the auto parts maker's annual general meeting of shareholders in Toronto May 10, 2007.

FRANKFURT (Reuters) - Canadian auto parts supplier Magna International Inc MGa.TO wants only a minority stake in struggling U.S. carmaker Chrysler, a Magna official was quoted by Frankfurter Allgemeine Zeitung newspaper as saying.

"Our offer is with DaimlerChrysler DCXGn.DE. This is now in the evaluation phase. We are only interested in a minority stake, if it comes to that at all," co-Chief Executive Siegfried Wolf told the Frankfurter Allgemeine Zeitung in an interview published on the German paper's Web site on Thursday.

Asked why Magna wanted only a minority stake, he said: "Magna does not intend to compete in future against other carmakers. That would be fatal."

Wolf confirmed that Magna had structured its offer in such a way that its Chrysler stake would be placed in a holding company clearly separated from Magna's auto supply business.

Magna has teamed up with buyout firm Onex Corp (OCX.TO) to launch its Chrysler bid, so the alliance could acquire a majority stake even if Magna's holding stayed below half.

DaimlerChrysler said in February it was considering all options for its loss-making Chrysler division and confirmed in March that it was speaking with potential buyers. A spokesman for the carmaker declined to give any more details.