Magna confirms Chrysler interest

April 13, 2007 at 9:35 PM
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AURORA, Ontario, April 13 (UPI) -- Canadian auto-parts maker Magna International Inc. confirmed Friday it was involved in the potential sale of DaimlerChrysler AG's Chrysler Group.

"Magna has previously commented that, as DaimlerChrysler is one of its largest customers, Magna is seeking a full understanding of the situation regarding the future of the Chrysler Group, and any constructive role Magna may play in a potential transaction," Magna said in a statement. "There is no assurance that any transaction will result from Magna's current involvement."

Magna founder and Chairman Frank Stronach told The Globe and Mail this week his company was working with Toronto private-equity firm Onex Corp. on a possible bid.

Magna and Onex offered $4.6 billion to $4.7 billion for Chrysler, an investor note from KeyBanc Capital Markets said.

Stronach met with DaimlerChrysler Chairman Dieter Zetsche Feb. 14, the day Zetsche announced all options were on the table for Chrysler, including a sale of the company, The Detroit Free Press reported.

Other potential Chrysler bidders include Cerberus Capital Management and a partnership of private investors Blackstone Group and Centerbridge Partners.

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