Magna confirms it bid for Chrysler

May 9, 2007 at 4:34 PM
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AURORA, Ontario, May 9 (UPI) -- Canadian automobile parts manufacturer Magna International Inc. confirmed Wednesday it made a formal bid for DaimlerChrysler AG's Chrysler unit.

Chairman Frank Stronach would not say how much his company's bid with investment-firm partner Onex Corp. was, but said it would not leave Magna with any extra debt.

"Everyone knows how adverse I am to debt," he said, alluding to Magna's brush with bankruptcy in the early 1990s.

"Keep in mind we have $2 billion of cash," Stronach added.

Some newspapers have said bidders were likely to offer $4.5 billion to $5 billion, whereas DaimlerChrysler values Chrysler at $8 billion to $9 billion, The Toronto Star reported.

Stronach also said DaimlerChrysler wanted to retain a stake in Chrysler, but he did not say how big that stake would be.

He added Magna and Onex were still willing to include additional partners in their group, which he described as "a contender" for money-losing Chrysler.

If Magna and Onex succeed, job losses at Chrysler, of Auburn Hills, Mich., would be "unavoidable," Stronach said.

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