Magna finds private equity partner for Chrysler bid
 

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Magna finds private equity partner for Chrysler bid: report

Magna International Inc. has hooked up with a private equity group to make an offer for the Chrysler group, a U.S.-based analyst Brett Hoselton said in a report today.

Magna and its unidentified partner “have written a joint letter of interest offering to buy Chrysler for roughly $4.6-billion-$4.7-billion [U.S.], with the supplier looking to take a 20-25 per cent stake,” Mr. Hoselton said in a note to clients.

“While MGA views its offer as offer and unlikely to prevail, the company also sees it as an opportunity to purchase an inexpensive stake in the auto maker should other bidders retreat,” he said.

Leading contenders to buy Chrysler from its parent DaimlerChrysler AG have valued the division at between $5-billion and $6-billion, he said.

Magna appears to have had contact with the leading equity bidders, which have been identified in U.S. media reports as Cerberus Capital Management and another entity involving Blackstone Group LP and Centerbridge Capital Partners LP.

Senior officials from Magna visited Chrysler group headquarters in Auburn Hills, Mich., earlier this month as part of a due diligence examination of the auto maker.

Frank Stronach, Magna's chairman, confirmed the visits, but said at the time that it was premature to discuss a takeover of Chrysler.

Mr. Stronach said Magna had to participate in the sale process in order to protect its relationship with one of its largest customers and the one with which it has its deepest relationships.

In addition to the Chrysler moves, Mr. Hoselton also said Magna is seeking ways to sell off its underperforming interiors business.

RE: Magna finds private equity partner for Chrysler bid
 

I hope this comes true. Magna seems like the best solution. I just hope GM isn't the partner, nor anyother car company.