Los Angeles billionaire sets conditions for purchasing Chrysler
Los Angeles billionaire Kirk Kerkorian's Tracinda company said Friday that his 4.5-billion-dollar bid for Chrysler would be based on "a true partnership" of the automaker's management, workers and investors.
The company said what Kerkorian's camp has "in mind is a true partnership of all the constituencies -- the company's management, all of its employees (both union and non-union) and the investors bringing the necessary new funds to the company to enable it to substantially enhance its product spending -- the life blood of any auto company".
"What we are talking about is a transformation in the way the risks and rewards in a large enterprise are shared -- an arrangement in which the interests of all constituencies are more fully aligned than in today's typical structure," the company said in a statement.
"We acknowledge that such an approach cannot be 'forced' on any of the parties, but rather can only be achieved with all parties feeling as if they are the recipients of a fair deal," the statement said.
Tracinda's offer to purchase Chrysler was announced Thursday. The bid is about one-fifth of what Kerkorian offered for Chrysler in 1995. Last year, Chrysler lost 1.5 billion.
In a letter to the board of Chrysler parent company DaimlerChrysler AG, Tracinda officials also offered to post a 100-million-dollar deposit to ensure exclusive negotiating rights on the sale.
According to The Detroit News, other bidders for the company include Blackstone Group and Cerberus Capital Management and Magna International Inc.
Kerkorian was named by the Los Angeles Business Journal last year as the richest man in Los Angeles, with an estimated worth of 9.3 billion dollars.
Born to Armenian immigrants in Fresno in 1917, Kerkorian, who never attended college, made billions of dollars in investments in Las Vegas casinos, airlines, and MGM studios -- which he later sold.
He was Chrysler Corp.'s largest shareholder in the 1990s. Last year, Kerkorian sold his holdings in General Motors after a failed proposal to merge the company with Renault and Nissan Motor Co.
The company said what Kerkorian's camp has "in mind is a true partnership of all the constituencies -- the company's management, all of its employees (both union and non-union) and the investors bringing the necessary new funds to the company to enable it to substantially enhance its product spending -- the life blood of any auto company".
"What we are talking about is a transformation in the way the risks and rewards in a large enterprise are shared -- an arrangement in which the interests of all constituencies are more fully aligned than in today's typical structure," the company said in a statement.
"We acknowledge that such an approach cannot be 'forced' on any of the parties, but rather can only be achieved with all parties feeling as if they are the recipients of a fair deal," the statement said.
Tracinda's offer to purchase Chrysler was announced Thursday. The bid is about one-fifth of what Kerkorian offered for Chrysler in 1995. Last year, Chrysler lost 1.5 billion.
In a letter to the board of Chrysler parent company DaimlerChrysler AG, Tracinda officials also offered to post a 100-million-dollar deposit to ensure exclusive negotiating rights on the sale.
According to The Detroit News, other bidders for the company include Blackstone Group and Cerberus Capital Management and Magna International Inc.
Kerkorian was named by the Los Angeles Business Journal last year as the richest man in Los Angeles, with an estimated worth of 9.3 billion dollars.
Born to Armenian immigrants in Fresno in 1917, Kerkorian, who never attended college, made billions of dollars in investments in Las Vegas casinos, airlines, and MGM studios -- which he later sold.
He was Chrysler Corp.'s largest shareholder in the 1990s. Last year, Kerkorian sold his holdings in General Motors after a failed proposal to merge the company with Renault and Nissan Motor Co.
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