Re: Tracinda Offers $4.5B To Purchase Chrysler

Posted by Dan Shockley on Friday, April 06, 2007 at 20:50:43 :

In Reply to: Re: Tracinda Offers $4.5B To Purchase Chrysler posted by MoparNorm on Friday, April 06, 2007 at 19:31:36 :

Not exactly. The difference is two fold. Cash. At the last offer Chrysler had a boat load of cash (if memory serves they had around 15 Billion in cash when the Daimler merger took place). Secondly, the pension liability is almost 20 B! So, it is hard to understand the relative value of offers without understanding who retains the liabilities. It would be very easy for the specific terms of the Kerkorian offer to be more attractive than the Magna deal based on assignment of liability and other terms. The price in this deal is a very small component of a very complex deal!

I hope that it lands with some guys with some sense whatever nationality they happen to be!

Dan

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Follow Ups:

• Re: Tracinda Offers $4.5B To Purchase Chrysler - MoparNorm 02:30:35 04/07/2007
  • Oh those Germans ! - Mark C 17:14:30 04/07/2007
    • Re: Oh those Germans again. - Mark C 17:23:36 04/07/2007
      • Re: Oh those Germans again. - MoparNorm 20:01:34 04/07/2007
  • I Agree Norm... - Marty 16:14:54 04/07/2007
    • Re: I Agree Norm... - MoparNorm 20:04:37 04/07/2007

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