• Most Popular
  • Most Shared

REFILE-Magna only interested bidder for Chrysler -paper

Sun May 6, 2007 6:56am EDT

Stocks

   

(Corrects typo in company name in headline to Magna from Magan in story published on May 5.)

Mergers & Acquisitions

FRANKFURT, May 5 (Reuters) - Canadian automotive parts supplier Magna International (MGa.TO) is the only remaining interested bidder for struggling U.S. carmaker Chrysler DCXGn.DE, Germany's Automobilwoche reported on Saturday.

Magna is at present the "only party seriously interested in Chrysler", the industry newspaper wrote, citing a source familiar with the negotiations.

Investment bankers are intentionally leaking talks with private equity firms Cerberus [CBS.UL] and Blackstone [BG.UL] but these are being held "only for tactical reasons".

A decision is expected to be made this month, with a sale to Magna slated to conclude in two months.

"All options are open," said a spokesman for parent DaimlerChrysler, declining to further comment on the article.

The paper reported that Daimler will initially continue to hold a stake in the loss-making unit.

Automobilwoche quoted a Magna manager as saying the company's chairman and founder, Frank Stronach, wanted to send a signal to the auto industry with the purchase that "he takes care of his clients in need".

The paper wrote that insiders say Magna will probably sell Chrysler again once the restructuring is successfully concluded.



More from Reuters

Joint Terminal Attack Controller SSgt Clinton J. Herbison, a U.S. Airman from the 817 Expeditionary Air Support Operations Squadron (EASOS) takes a break during a night mission near Honaker Miracle camp at the Pesh valley of Kunar Province August 12, 2009. Credit: REUTERS/Carlos Barria

Pictures of the Year

A look at the best photos of 2009.  Slideshow 

    The Dalai Lama jokes with a nasal spray after being asked his opinion on the swine flu during a press conference after his first lecture in Lausanne, Switzerland, August 4, 2009. REUTERS/ Valentin Flauraud

    What a wacky year it's been...

    Um, what's up the Dalai Lama's nose? "Oddly Enough" editor Bob Basler rounds up the goofiest photos of the year.  Full Article 

    A caution sign is seen next to a stock board at the Australian Securities Exchange (ASX) in Sydney September 5, 2008. REUTERS/Daniel Munoz
    Political Risk in 2010:

    Don't say we didn't warn you

    With the financial crisis (mostly) in the past, U.S. investors are eying a fresh start to the coming year. Here's a look at what speedbumps lie ahead.  Full Article