Magna, Private Equity Firm Bid for Chrysler, Analyst's Report
March 23, 2007

Canadian supplier Magna International Inc. has joined with a private equity group to make an offer to buy the Chrysler Group from DaimlerChrysler, according to Brett Hoselton, an analyst for KeyBanc Capital Markets, as reported by Automotive News.

Magna and its partner have made an offer to buy Chrysler for $4.6 billion to $4.7 billion, Hoselton says in his March 23 report. He cites sources at Magna but does not name the private equity partner.

Magna's stake would be worth 20 to 25 percent of the Chrysler Group, according to Hoselton.

"While MGA views its offer as low and unlikely to prevail, the company also views it as an opportunity to purchase an inexpensive stake in the automaker should the other buyers retreat," Hoselton wrote.

Magna also is undertaking a strategic review of its interiors business, which includes "all options including operational improvements or the possibility of selling the business entirely," Hoselton added.

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