U.S. News

Magna Only Interested Bidder for Chrysler: Report


Canadian automotive parts supplier Magna International is the only remaining interested bidder for struggling U.S. carmaker Chrysler, Germany's Automobilwoche reported on Saturday.

Magna is at present the "only party seriously interested in Chrysler", the industry newspaper wrote, citing a source familiar with the negotiations.

Investment bankers are intentionally leaking talks with private equity firms Cerberus and Blackstone but these are being held "only for tactical reasons."

A decision is expected to be made this month, with a sale to Magna slated to conclude in two months. 

"All options are open," said a spokesman for parent DaimlerChrysler, declining to further comment on the article.

The paper reported that Daimler will initially continue to hold a stake in the loss-making unit.

Automobilwoche quoted a Magna manager as saying the company's chairman and founder, Frank Stronach, wanted to send a signal to the auto industry with the purchase that "he takes care of his clients in need."