Kirk Kerkorian offers 4.5B for Chrysler

[Wagner]

Just in. With 100M to DC if they allow private negotiation rights. This all hinges on the Auto Labor Union.

http://en.wikipedia.org/wiki/Kirk_Kerkorian

http://money.cnn.com/2007/04/05/news...ex.htm?cnn=yes

[UCrewX5]

Not the first time he's tried to buy Chrysler. The price sure has gotten cheaper though

[vinuneuro]

No sense for DCX to throw away the auction..

[Chris F.]

Anyone have any idea what Chrysler is worth? 4.5B doesn't seem like very much.....I guess it isn't worth very much

[UCrewX5]

The problem with Chrysler is the underfunded pension and benefits obligations for their workers and retirees. Absent that liability, it is probably worth a whole lot more. But you have to take the whole enchelada, as they say.

[vinuneuro]

I don't understand the Kerkorian's fondness for the Big Three. As Jeff, points out, it's about the 'whole enchelada.' I think of 1001 better investments than GM and Chrysler.

[Wagner]

Howard Hughes syndrome.

[LeMansX5]

Originally Posted by UCrewX5

The problem with Chrysler is the underfunded pension and benefits obligations for their workers and retirees. Absent that liability, it is probably worth a whole lot more. But you have to take the whole enchelada, as they say.

Exactly! and same was the case with GM when Carlos Ghosn was talking with them last year.

[the head]

put the company into restructuring, hire non union labor move factories to right to work states...breaking a labor union is not that difficult these days...let them strike...and keep bringing in more outside labor...it's not a difficult process...plus under restructuring you should be able to ditch some of the pension debt.