Magna officially confirms interest in Chrysler
Canadian PlasticsCanadian Plastics
Aurora, Ont.-based automotive parts maker Magna International Inc. has confirmed its involvement in the potential s...
Aurora, Ont.-based automotive parts maker Magna International Inc. has confirmed its involvement in the potential sale of DaimlerChrysler’s North American operations.
In a short statement released on Friday, the company said “it continues to review potential alternatives regarding the future of the Chrysler Group,” but also noted that the talks between Magna and Chrysler may not result in a transaction.
In an interview with The Globe and Mail earlier this week, Magna founder and chairman Frank Stronach also indicated that the parts supplier would put a “big sum” forward for Chrysler. According to Stronach, Magna is working with Onex Corp. in order to finance the purchase.
The confirmation brings an end to weeks of speculation about Magna’s interest in the auto maker. The speculation made headlines in February after KeyBanc Capital Markets analyst Brett Hoselton said Magna was “seriously considering” the potential purchase of Chrysler in a note to investors.
In a second note released last month, Hoselton said Magna had teamed up with a private equity firm to write a joint letter of interest, offering $4.6 million to $4.7 million for Chrysler’s operations. Magna has not formally confirmed the amount of its bid for the company.