With the Chrysler Group in play, the company's parent -- DaimlerChrysler AG (NYSE: DCX) -- is fielding a variety of big-money calls. The buzz is that private equity firms Blackstone Group, Cerberus Capital Management and Centerbridge Capital Partners are preparing bids.
But, hey, it's really not a mega auto deal without billionaire Kirk Kerkorian, right?
Well, today his investment firm, Tracinda Corp., made a $4.5 billion cash offer for Chrysler Group. According to the Wall Street Journal, he is even willing to make a good faith deposit for $100 million [subscription required].
Keep in mind that Kerkorian is a billionaire for a reason: He knows how to structure deals. So his offer comes with some conditions, one being that the Chrysler Group will need to strike a good deal with the UAW. Moreover, there needs to be a way to deal with the hot potatoes of pension and health-care liabilities.
I think I would want the same things if I were shelling out $4.5 billion.
It's also getting Wall Street excited -- as there may be real interest in Chrysler Group. DaimlerChrysler's stock was up as much as 4.9% to $84.75 on the news. DCX is now up 2.85% to $83.38.
Tom Taulli is the author of various books, including the Complete M&A Handbook and the EDGAR-Online Guide to Decoding Financial Statements.
